No, SPI does not operate the SS line in master mode. That's because you're free to connect multiple slaves (and thus need multiple SS lines) to a single master.
I big difference I see, with shiftOut() you make latch LOW before you start sifting and with SPI only after. I don't know if the TPIC6B595 cares but I do know that
digitalWrite(latchPin, LOW);
digitalWrite(latchPin, HIGH);
Makes a very very very small pulse. Probably to small.