So I'm 50+ hours in and have been working with the NCR the whole time. Status-wise I'm "Liked". I had originally skipped the NCR Correctional Facility, but did go through Primm, where I put the robot in charge.

So today I head over the Correctional Facility and find I'm at "Merciful Thug" status with the Powder Gangers. I pay the guy off at the gate and start the "I Fought the Law" quest. I'm now at the point where I need to go to Primm. One problem, everybody in town, Primm residents and NCR want me dead. Tried other NCR locations and they hate me too.

I'm not wearing any Powder Ganger gear. I told Rex and Boone to stay put, just in case. I even tried wiping out the whole Facility of gangers to try and get hated (save for the building with Eddie), no luck.

I've been playing all day on the same save, so going back at this point would be painful.

I assume the quest is bugged? Do I have any options?

For some reason, I do not know why, repairing your armor with any Faction related armor WHILE wearing that faction related armor causes a script bug to lead to people thinking you are still wearing that armor.

It happened to me as well, try to fix it by getting some powder gang armor, putting it on and taking it back off. It should work, but if it doesn't, then I really don't know.

It worked. Thank you! No more using faction armor to repair with I guess.

Just not use any armor your wearing for repairs on another suite and your fine.

Just to mention, sure seems funny to me to read this.
The Powder Gangers correctional facility was one of the very first things I ever did. (Back in October.)
Whereas the OP is doing it with Rex!
Man, I was Level 30 + before I ever went into The King's building, heheh...
Just shows you how many different twsted paths there are through the same game.
Regards