Auto-dismantle should only start at a specific light level. My max light right now is 960 with the artifact, 951 without it. I'm still getting blues that help my light level, specifically my highest light level energy weapon is currently a blue.
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Yup. That's exactly how it should work. Or, have it as an option.
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This exactly. Blues should auto dismantle when your reach the lv cap. In this instance, 960.