I don’t see that the game skipped it, Kyvoth, you just don’t yet qualify for the quest. The requirements to get “Home Improvement” is not to have completed “Souls for Sinfall”. I know Wowhead lists it as a linear progression but it does not appear to be as listed from what I can see.
I think proper quest progression is still being sorted out, so those lists might not be entirely accurate.
For the redeemed souls after switching covenants, we’re aware of the issue and it’s being looked into.