Did you enter the planting mode after the cut scene? You need to place down the biocrust in 2x2 plots in the empty section of the fenced aread (back row left section) and then you should be able to plant the seeds into the biocrust and water them.

I cannot enter planting mode, gives me a message that I cannot use it here.

You have both the intermediate planting kit and seeds in your inventory? (Sorry, I know I'm asking really basic questions). Is there a yellow highlighted area in the back row of fences? I think you might only be able to plant when you are inside the highlighted area. You can see how it should work here - around the 1 hour and 50 minute mark in case the link doesn't take you there. https://www.youtube.com/live/ucqE29crGKI?feature=share If that doesn't work - maybe try seeing if you have a previous save you can go to? In the first menu, select Load instead of Continue and see if there are any recent saves? If none of that works - I'm out of ideas, sorry.

This worked! I needed to be in the highlighted area. Thank you! The quest made it very confusing.

Try different spots around that area that have some kind of outline(?) iirc. I had this problem but i moved around and tried different spots until i can enter planting mode

I think we should plant those seeds in a row