Maybe not a bug, but poor design/overlook. Imagine making an extreme twink, and being forced to do it all again just becuase the armor went above the requirements you meet, and you had no ingame way of knowing what they would turn out like.
I think the Living Cyber Armor works properly, or at least it used to when I got it on Ofdarkness a few patches back.
Edit: Damn Fasteel, you're too fast for me
