When you are designing a new unit and you click the up-arrow thingy to make a weapon of piece of armor upgradeable, the arrow stays highlighted and to tell what the unit will get you mouse over it and it tells you. Ok so far.
Call the unit up later to upgrade it (different sense of the word "upgrade") and the up-arrow isn't highlighted, the item it will use is highlighted and there is nothing to indicate that it is upgradeable.
Personally, I think it should highlight both the up-arrow and the piece of equipment it will use.
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First time I tried to post this I got a "forums went boom" message. We'll find out the hard way whether this ends up a a double post.