Title.
Today’s legend lost sector, Concealed avoid, says it is dropping Chest but is instead dropping Arms. Another case of a mislabeled lost sector or bugged loot drops.
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Did the arms drop into your arms inventory, or was your engram inventory full and it went to the Postmaster. Lost Sector exotics that go to your Postmaster will decrypt as an exotic from the Master Lost Sector loot pool regardless of whether it came from a Master or Legend Lost Sector. So if you decrypted it from the Postmaster that is why. The solution to that problem is to make sure you clean out your engram inventory before running Legendary Lost Sectors. If it dropped directly to your arms inventory then please reply with clarification that it wasn't a Postmaster issue as described above.