After completing a quest and getting another that asked me to report when done with a task, I went to build a boat to cross a lake to head back to some ruin I found and pick some stuff up. I walked away from the tree that gave me the quest and chopped another one down...
...but when I chopped it down, it said the quest failed while the report part was in red. I didn't chop down the tree that gave me the quest, so it's not clear why it did that. Unless trees don't like nearby trees getting cut down, this shouldn't happen.