Should i just quit the game the moment i see such lobbies ?

Depends. If you had no filled that match then where would the red line have been? I'm assuming that you fall into the grey area somewhere, though because the red line is a team average it's entirely possible for individual players to still fall outside the range.

So far this season I've seen my own no fill line move from the peak of the curve to about as far left as you can get and it's still holding there fairly consistently. But I still see quite a few matches where the grey area extends from extreme left all the way to the center, sometimes even well into the right hand side of the curve. I don't quit those matches because I know that my "real" red line is probably the one I had at the beginning of the season and that I shouldn't be put off by a few right-side sweats. What bothers me is that if my squad average is way far to the left then I have to assume that my squadmates are fairly new to the game. Turns out that's often untrue, and they like me are presenting to the system as something slightly different than what they really are.

I guess the real lesson here is that you shouldn't believe anything you see from the center of the curve to the left hand side. But if I saw a curve like yours... I'd think twice about whether there was really any contribution I could make to that match other than to provide sweats with easy kills. Honestly, it's pubs so does it really matter if you call it and move on to another match?