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looking over the old posts here I’ve found that this has been an issue for a LONG TIME. there were like 6 posts about this same thing and it was never fixed, all posts on it were closed so i had to make a new one. Please fix this, its a little absurd that its been an issue this long and its not been taken care of.
What is your character name in New World: Nutea
What server/world did you experience your issue on: Orofena
Describe the issue you are experiencing: Can’t upgrade/craft Battle’s Embrace gear with materials in bag.
Is this a bug or an exploit: bug
(if a bug) How did the issue effect your gameplay: I can’t upgrade the gear i got from quests.
(if a bug) Were you able to recover from the issue: No
(if a bug) Please include a screenshot or video of the issue that you have experienced:
What are the steps to reproduce the issue as you experienced:
Finish Battles Embrace quest chain.
Obtain legendary upgrading material.
Try upgrading the gear.

