to purchase an exotic gun, it seems that you need to already own it on top of whatever necessary materials you need to have. Is this a bug or am i missing something?
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It's not a bug. The guns on the bottom are for people who got exotics before the dlc when the max attack was 300 and armor was 30 light. They can trade those older models in for the newer versions. As others have stated, the only weapon he is selling is plan c. If you received any exotics since the release of the dlc, do not use the xur upgrades.