The effect in question is this:
Once per turn, during either player's turn, when a Spell Card or effect is activated on the field: You can negate that effect, and if you do, attach that card to this card as Xyz Material.
That effect, according to the original Japanese text, should be read as "When a Spell Card, or the effect of a Spell Card, is activated on the field". Titanic Galaxy only works on Spells, so there's no bug.