Earlier today I tried crafting a Dusker Cap while I had the Wolver Cap that I was going to upgrade equipped and I received an error - I think it said failed and didn't say why. I tried several times and it wasn't working. Then I equipped a different helm and tried crafting and it worked right away.
Do items have to be unequipped to upgrade them? If so I wish the game would display a message telling me to do so.
Thank you.
Yes, they need to be unequipped.