I completed the island task before the challenge appeared in the journal. Currently, I cannot complete it again or receive the Chelenge Reward.
In the attachment there is a screenshot with the completed task and the lack of completed cheleng.
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I also have this bug, did this end of getting resolved for you?
the problem has not been resolved. there is a way around it. you have to get to this island with a different female character (of the opposite sex to the one you were there for the first time). you will be able to complete the quest, which will unlock the final quest that you can already do on the main character. it works, I checked.
The Island has 2 questlines. One for male characters and 1 for Female characters. The Welcome challenge seems to only complete when you do the island on a Female character