Before I though it was a rotor/robotic leg combo causing the issue but even with just a rotor and impeller the challenges will not progress. I tried maple/impeller and i tried falco/impeller with no change to the challenge progress. It seems to be just the side challenge affected and not the main one.
Update: I also just tried playing patrol and the challenge finally progress but it don’t work in the new Next Step mode so I’m guessing there must be some sort of bug with the new mode.
They fixed it, thank god!!
I say there’s a few players that missed out on the final battlepass rewards because of it, I hope that they get refunds.