The tooltip for the Advanced Satellite Upgrade says it is applicable to both Crafting Pipes and Crafting Modules. However I cannot seem to find a way to do this and it is not mentioned in the wiki. I was looking to use it to automate a machine which has inputs on different sides (so multiple satellite pipes) - using it to craft a few different recipes from inside one Chassis. Is this a new feature or am I missing something simple here? :)

Is this still being worked on?

It does work when spawned In. You can create a recipe for it, and add a texture but be worry of issues.

Indeed as @DarknessShadow pointed out, there is currently no Option to directly upgrade Modules. The Authors are working on the "Upgrade Module Upgrade" but its not yet finished.

You'll have to wait until its fully implemented.

There is an upgrade for chassis pipe so you can upgrade the module but that doesn't have a recipe or an icon (so I think its not finished).

I am sure it will be continued at some point.

The little bit of testing done with a spawned in version seemed to cause no issues. Is their anything that should be watched out for if enabled?

fuzzy upgrades applied to itemsink modules crash the game on updating the pipe, so don't do that.