I purchased the processing outfit from the pearl shop that allows a player to process materials from the storage but for the life of me I  can't figure out how to make it work. On the PC there was a function added to the storage menu that allowed this but it doesn't appear (or I can't find it) in the xbox version.

Having the same issue myself! Any word on the fix?

Does it not see/use items or was there a button to push to enable it beyond wearing it?

I had issues having a workshop recognize the items in velia warehouse completely. 

Good thing to find these early on since they didn't include it in beta.

So the item was removed from the Pearl Store as it is currently not working as intended. The feature will be added in the future, but if you would like to raise an issue with our CS, they may be able to return the Pearls.