What does Arachnophobia reward?

Arachnophobia gives a choice of Claystone Shortsword, Clear Crystal Rod, 1,650 experience.

Where does Arachnophobia start?

It was picked up in Stonetalon Mountains.

Its level has not been recorded yet; it shows once a player accepts it with the addon running.

No. The quest exists in Classic Era as well.

World of Warcraft: Forever · quest

A quest in World of Warcraft: Forever in Stonetalon Mountains and turned in to Maggran Earthbinder. Recorded by 2 players running the addon.

Level, giver and objectives show once a player with the addon accepts the quest.

Item	Given	Item level	Vendor sell
Claystone Shortsword	as a choice	21	16s 97c
Clear Crystal Rod	as a choice	21	19s 93c

What does Arachnophobia reward?: Arachnophobia gives a choice of Claystone Shortsword, Clear Crystal Rod, 1,650 experience.
Where does Arachnophobia start?: It was picked up in Stonetalon Mountains.
What level is Arachnophobia?: Its level has not been recorded yet; it shows once a player accepts it with the addon running.
Is Arachnophobia new in WoW Forever?: No. The quest exists in Classic Era as well.

Source: what players running the addon saw in the quest windows; the quest text itself stays in the game. Every quest seen · Stonetalon Mountains