You can only upgrade exotics from Pre-DLC versions to current versions.
How does this keep happening to people?
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Nope this is wrong. You can upgrade a post dlc exotic still.
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Edited by hotmale213: 1/24/2015 2:01:32 AMOnly if they are at level 30 max which can still happen due to some bug when decoding engrams. Too many people are trying to upgrade level 36 gear which only resets it.