It looks like quality panglite is forbidden because the volcanic seed is made from panglite and fluids, which means the seed matches the quality of the panglite, and then from the uranium from the volcanic seed you can make panglite fiber, which can make regular seeds along with mixed dust, which you can make from panglite. So quality panglite gives rise to quality everything.
Unfortunately the Cosmic Incubator and Sentient Processor require regular panglite and thus those items can't be quality either(without great effort). I suggest changing those two recipes so they use panglite fiber instead. Well, it doesn't matter as much for the Sentient Processor since it's only used to make Astroid Collector MK2 and you can just recycle that for upcycling purposes. The Cosmic Incubator can't be upcycled though. It would be better if it recycled into itself like the Sentient Processor does, though that's still quite inefficient.
A more involved workaround would be to either introduce a new building for making mini-universe seeds that has an inherent -100% quality modifier(and has few enough module slots that it can't be overcome), or use the Cosmic Incubator for seed recipes and give THAT building the quality penalty.
edit: wait that doesn't work does it? That just prevents quality from going up, it can't go down. The volcanic mini-universe seed production would have to be hardcoded somehow to never be quality... oh, you could change its recipe to be fluid-only. Heck, you could change every recipe that involves Panglite to use a fluid that's derived from Panglite. Like, panglite slurry or whatever. Then its quality simply does not matter anymore.
