They even mentioned it in the 1.2 patch notes that the second stage which is the most bugged part of the Quest has been fixed. But as we see, nothing has been fixed. Like, literally nothing else in those patch notes is of interest to me because that is the only bug I have.
After 1.2, the Brendan/S.C.S.M, quest is still bugged. After moving the dumpster in the quest "I Can See Clearly Now", I believe the next part of this quest line involves a woman named Theo. I believe the next quest is called "Spray Paint". However, Theo never spawns so the next quest doesn't activate.
Note the 1.21 language, that it "should" trigger (quote below). Hmm. It's not surprising with this poorly developed monstrosity that they couldn't say that it "will" trigger properly. Still not showing up, I followed every hint, and it's not a lonesome road, obviously. C'mon CD, fix the damn thing!!
Spray Paint should now trigger properly when player approaches Brendan.