Character quests are confusing and seemingly impossible

Not defending anything just pointing out I have never played a game where a quest is "finished" if you can't claim the reward.

I am having the same issue. Not sure what "shards" you have to earn to claim the rewards?

the entire new system is confusing and was necessary 

You can clearly see what shards you need if you look to the left: Huyang shards.

I'm addressing this issue by emailing CG_MEATHEAD and addressing the problem. I know that a lot of players are use to getting the red crate every 4 days and the rewards are very helpful. Then the developers updated the game with this Episode (money) track idea that a lot of players don't agree with including myself, I get it! If the developers know what is needed addressed, then they can make the changes to the addressed. If they are unwilling to make the changes, then is it fair to walk away completely from the problem ( the game).

The quest "defeat an enemy with Huyang" is finished as soon as you've done just that and defeated an enemy with Huyang. I mean, duh. That's why it's now shows "1/1" because the one task assigned by this quest has been successfully completed. It's not rocket science.

If there is a prerequisite for being able to complete the quest, such as a certain amount of character stars, shards, relic levels et cetera perge perge, I shouldn't be able to attempt the quest at all without meeting said requirements. It's always been this way in SWGOH and every other game I've ever played.

Of course I can see what CG is trying to accomplish here. Make people think they've already earned a reward but it's being denied unless they sink yet more money into the game. It's a cheap psychological trick that must feel really scammy to new players and I have no doubt it's going to backfire in terms of player retention. If the game had been in this sorry state when I first tried it, I would have not stuck around.

I think 2 out of 7 is correct for you. I'm guessing you have at least 75 shards of Huyang and have already claimed the top two quests. It's then just showing the 5 remaining ones.