When the Activity Completion is set (for a manual grade Moodle Activity) to "Show Activity as Complete when Conditions are Met... student must receive a (pass/fail) grade" then the student continues to see the "Auto Not Complete" completion status icon until the teacher grades the assignment. It would be fantastic for there to be a 6th icon state (such as a checkbox with a yellow check) to indicate the assignment has been submitted and is now waiting on the teacher for the completion status to reach a 'complete' state.
This would match the behavior of the Completion Progress Block, which works off the Activity Completion states, but adds a yellow check into the block for submitted work that has not yet been graded.
There are 3 image icon states for activity completion:
Manual Enabled: Teacher View
Manual Not Complete: Initial Student View
Manual Complete: Student View upon condition being met
There are 5 image icon states for activity completion (and this tracker is aimed to recommend a 6th icon state):
Auto Enabled: Teacher View
Auto Not Complete: Initial Student View
Auto Complete: Student View upon condition being met
Auto Complete Passed: Student View upon condition being met
Auto Complete Failed: Student View upon condition being met
Recommended Feature: Auto Not Complete Submitted: Temporary View upon submitted an activity until the condition of being met is satisfied by the instructor