I just did the Exodus crash nightfall and got the Season of the Haunted version of Horror's least as a drop. The only problem is it doesn't count towards the Destinations: Dreaming City tab because it's still a Forsaken weapon.
Is there a fix, solution to this or am I just s.o.l for the Cursebreaker Seal?
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You need the sunset version which drops from the corrupted nightfall. Unfortunately that's not in the rotation this season - so for now you're out of luck for getting it.