I dont have this. Instead of a trophy at the top in the "Challenges" bar. I have a pen icon. It does have a challenges category, but there is nothing for me to click on. Its just a greyed out list of things ive done like steps in categories like cooking, crafting, combat, etc... with the XP it automatically gives me. No mods. Up to date. Downloaded after 1.0 release. Why?
I just tested a new world and the trophy icon is next to the exclamation icon and the group of people. However, there is a pen icon next to "challenges" and "challenge" in the boxes below the trophy icon. If the icon for the challenge is greyed out then that means that you have already redeemed the reward from that catergory. If the icon is green then that means you have completed it and have not claimed the XP reward yet. I completed some in my new test world and it didn't auto claim the rewards for me. I would say to look for a white icon of a challenge you have not done yet and work on completing it. You can click on the icon and track the challenge to see how close you are to being done. Once it is done, open up the challenge menu by pressing "Y" and the icon should be green and when you go to it you should then have the option to redeem the XP.