The "out of the box upgrades the items" description is technically accurate a bit of a misnomer, because like in base game, speed module effect lowers that quality bonus. Description makes no mention of this. When it's below +100%, the difference to 100% is the chance for item to not be upgraded at all.
This is both intentional and also a compromise. While it's possible to make it always upgrade to next quality with lua control behavior, it also is expensive because lua is too slow for the game - I had like 50 of them working and I'd already have gone under 60 UPS. The compromise part is that since it follows game's logic on quality, you have good chances on skipping quality upgrades altogether. Either way the refinery makes logistics of chaining them to get something to highest quality, super easy to handle.