We have an update for the treat with content update 457. Make sure you are running latest one (Device -> Dynamic Updates). Threat ID 36729 and default action is set to "Alert". You can change it to drop from Objects -> Vulnerability Protection -> Exceptions (check show signatures) and search for 36729 and change the action and commit. Hope this helps. Thank you.
Yes. See this site for details regarding PAN-OS and the applicability of this bug against the firewall itself:
Content version 457 was released very early this morning, which addresses the firewall's ability to block these attacks:
Please note the following for our new Threat DB version 458, just released.
Also note that the default action is 'Alert' not 'Drop'.
Notes: Release notes for emergency content release for CVE-2014-6271 update and CVE-2014-7169
Thursday, September 25th, Palo Alto Networks became aware of additional vulnerabilities with the Bash shell utility. The fixes for CVE-2014-6271 were incomplete from Operating System vendors and there is a new vulnerability, CVE-2014-7169, that describes this issue. To address this new vulnerability, Palo Alto Networks is releasing an emergency content update that provides updated detection of both CVE-2014-7169 and the previous CVE-2014-6271 vulnerability with an update to the IPS vulnerability Signature ID: 36729 "Bash Remote Code Execution Vulnerability" with "Critical" severity and default action of "Alert".
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