The Shroud of Dreams, the House of Thule's Armor combine container, recently had class restrictions added to it and many people cannot make or improve their House Armors. The restrictions are new and were never there before. They are now restricted to SHD / SHM / NEC / BST
Shroud of Dreams container has always shown those as the base classes it is not a recent addition. The liquid agent you use determines the class. I went ahead and ran thru a combine on Tunare before I posted and it worked fine. More than likely they are not using the correct mats. For tier 2 you have a choice of these combines: Remnant (for tier 2 it is Recondite ) + Class-Specific Coalescing Agent + Inchoate Template (or player made template) OR Recondite Remnant + Tier 1 Armor piece Can anyone screen shot what they are using in the combine? I just tested with tier 1 since that is what I make for most players and here are the screen shots. The first one shows what I am using to combine and the second shows the final result. You will see it is a ranger item even though the shroud did not have ranger listed.
And finally the reason this is not a bug is because it is slightly misworded as far as the usage: Necromancers, Shadow Knights, Shamans, and Beastlords can change the focus on a wrist piece by placing it inside a Shroud of Dreams by itself.