As stated, anyone that skins an item that has any Quality Crafting, it simply strips the effects and reverts to normal item.

I'm working on a big update for this, I'll include this fix in that update.

Any idea when this will be released as I want to keep my player base up to date 

Does this release fix the Skinbox issue?

It does not, I believe you responded on codefling as well - I messaged you on there!