The quickShipEntireOrder in ShipmentServices.xml takes in an optional field called "setPackedOnly". This check for setPackedOnly was added to 'createShipmentForFacilityAndShipGroup' in r1139346. QuickShipEntireOrder also calls the 'createShipmentForFacilityAndShipGroup' simple method, but setPackedOnly is never set in the context before making the call, meaning that setPackedOnly is always empty when it's checked in the method.
Additionally, the check on setPackedOnly is written such that if setPackedOnly is NOT empty, the status is taken to SHIPPED. Instead, it makes sense for it to be taken to SHIPPED status when setPackedOnly IS empty (see 'setShipmentStatusPackedAndShipped' Line 1719).
See my original thread on the ML here: http://ofbiz.135035.n4.nabble.com/Quick-Ship-Order-Status-Service-td4648696.html