So I level up my New Monarchy and choose the armour package and I get a class item. I check post master and all my armour slots have space but, nothing.
Class items are an additional drop to the armour not an instead of!
Both the Crucible and Vanguard packages still work as expected so this seems to be only a affecting FWC, NM and DO packages.
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If you'll look, a class item is part of guaranteed loot. There are other variations of the class item in the possible loot.