You both may want to check your backpacks, as they may be full.
Hubby had this happen to him a few days ago himself. When I mentioned to him about his backpack being full, he looked and said he didn't have much gear in his backpack...Told him to check his housing items list in his backpack, and it was packed.
After he emptied his backpack of some housing items, then he was able to craft the items for his crafting quest.
Since the crafted items go into your backpack immediately, if there's no space in it, you can't craft the item. 8)