Ecu shield will not start Phase 2--

[Snarf]

Mewk Chorosap says there is a problem with my Smythe's shield and needs to be repaired. Guildmaster says nothing when traded to him... Can't initiate shield phase 2??????

[Nyarlko]

From the patch notes:
Known Issues
The event occurring when starting the second step of the Escutcheon questline will occasionally be skipped under certain conditions.

Sounds like you found those "certain conditions" ><;;