I have a crafter setup with 12 beacons filled with quality modules and the crafter is at 112% quality.
Crafting modules returns only common modules
crafting gears returns uncommon 90% of the time and rares 10% of the time.
it seems rather inconsistent and also not how i thought quality works
It seems to happen in assembling machine 1s, but it doesn't happen in assembling machine 2s or 3s ams or otherwise. AMS assembling machine 1s don't seem to be effected either, so a temporary solution could be to use them instead of assembling machine 1s in setups involving quality.