UN-fixed as of patch 1.6.
Neither the healing bonus nor the damage bonus work. tested 3 times on map 2 of the FE scenario.
unfortunate, since it was the only decent 2h I found.
I see they deactivated both bonuses to the sword in a previous patch.
but... it's only a base 15 damage sword. that's only 3 more than a training sword.
makes it a very expensive, but useless, toy.
why not put back the bonuses, but just reduce them? otherwise, bump the damage up to 25 base.