Let me just recap this situation so everyone is on the same page:
We had fixed the Armaments of War quest being offered too early on our internal servers prior to 1.8 release but when the patch was applied to the live server, it broke again. We had the GM team stay as vigilant as possible killing Geologist Larksbane as we tried to hotfix the issue but we were unable to. Some players started catching on about the quest being offered and were intentionally telling others to abuse the bugged quest for free items / reputation. It was at this point we issued a warning about the quest. Yesterday we reset the quest for all players and deleted all remaining instances of the items offered from these quests. We also disabled 'Armaments of War' until we are 100% sure that the quest will not bugged again. It is one of my top priorities to get fixed.
No one has been banned for completing the quest and there are no plans to ban any players for previously completing the quest. When the quest is made available again (correctly), I will update on this thread.