Pretty much. I was in colonia, did a level 1-3 FSD. Not enough mats to start level 4.
Ground out the mats in another system, docked at Jamieson Memorial and accidentally upgraded lvl 4. Went to grind mats for lvl 5 then took em to the engineer..... HE WOULDN'T TOUCH ME. Something was wrong with not enough reputation, which was absolute nonsense. Level 4 was 100% complete!
I don't really want to try and figure it out anymore. I would eventually end up back in the bubble and finish it off with my other engineer (and did) with no problems.
Personally, if I had to do it over, I'd grind out mats for lvl 1-3..... then go out and grind mats for lvl 4-5 and make the effort to go back to the engineer no matter how far away.
After all, all that effort, grinding away, a lil more effort to get to the engineer is pretty minimal in comparison.