Currently I was aiming to get the Magic set that eventually turns into the Divine Veil and Mantle. I had managed to get the recipe for the 2 Star Magic Hood and Cloak (I started playing yesterday -- and to my glee managed to craft a High Variant in Piercing and Sleep respectively. So I set to level up the gear until I could get the recipe for the 3 stars and so on... And now I find that because I leveled my cloak and hood they cannot be upgraded -- but anything 3 stars and up can be levelled and upgraded without a worry.
I suggest switching this so any level 2 star item than wants to be crafted into a level 3 star upgrade of itself can do so from level 1+ -- as opposed to the sole 1 option. It simply makes no sense that it cannot be upgraded because it was levelled -- when the whole point is to level up your stuff so you can survive longer in the Clockwork.
wow i didnt know that was a rule that does seem like bs