This latest patch essentially pre-installed Rise of Iron (whether you've bought it or not). This means the game now thinks you haven't completed the story mode (which now includes Rise of Iron's story).
But they're restricting drops of RoI level uncommons and rares, meaning the system defaults to giving out Taken King lvl 39 gear.
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If they did that then they suck. It makes no sense to have a release on the 20th with no access to stuff now but penalize us instead. What garbage.