I set up an automatic Jungle farm to make the wood slabs for the Chapter 1 automation quest line, and while I was automating the saws, the first "Log Stripper" quest would not complete as Stripped Jungle Wood doesn't count as a valid item to complete the quest.

I had to just throw an Oak Wood block on the saw (or just manually strip it and chop it down) to get the quest to complete

(Images from a creative test world I've been using for testing)