We tried 3 ways to make people in Prov House...all go to star as the same category. Adding to Mayor's House from star does not increase count in the quest. Pop added by Mayor's House every few minutes does not count for the quest. Only settlers added by the school appear to satisfy the count of 50 needed for the quest.
Not everyone has schools....how can they possibly complete this quest? If it won't work and can't be fixed quickly, you need to kill it and send the eggs to all players.