Bajrang, a two-time Commonwealth Games champion, succumbed to a technical superiority (10-0) defeat at the hands of 23-year-old Yianni Diakomihalis of the USA in the 65kg quarterfinal bout.
The 28-year-old Indian, who has three World Championship medals to his name, will now hope the two-time cadet world champion Diakomihalis reaches the final so that he gets a shot at a bronze medal via the repechage.
Earlier, Bajrang had defeated Cuba's Alejandro Enrique Valdes Tobier on points (5-4) in the pre quarterfinals. The 18-year-old Jaglan, on the other hand, continued his quest for a bronze medal in 74kg as he defeated Suldkhuu Olonbayar of Mangolia 7-3.
The World under-20 bronze medallist will take on Yones Aliakbar Emamichoghaei of Iran in the bronze medal match later in the day.