Quarried stone no longer generates in forests as it should. I made a superflat world with the fallowing preset: 2;7,63x1;4;stronghold,biome_1,decoration,dungeon,mineshaft. No quarried stone appeared.
Abyssal stone generates fine.

int y = world.getTopSolidOrLiquidBlock(x, z) - 3

I don't know how the gen presets work, but make your world deeper.

I have checked my normal world for quarried stone and it is nowhere to be found. The example I provided above is just an example to make it extra obvious that it don't generate.

So long as it works in normal worlds is all I care about.

Gen Code:
http://hastebin.com/robetepuge.avrasm

Ah...found the problem, some of my preemptive 1.7 updates was prevent it from placing the blocks. Its digging the hole, just not putting anything in it.