I currently have a couple of gauntlets and an artifact that's a higher light level than my equipped legendaries, but it's NOT possible to use these for infusion. Legendary artifact is at 287 -> Rare artifact at 299 - NOT possible to infuse legendary with this one. I have encountered this several times w/gauntlets, boots and artifacts! Hey... What is the dealio?
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You can't infuse anything in to blue gear only purple or yellow. Oh and make sure it's unlocked this caught me out lol