SD is applied post focus, post crit (though I could be forgetting a single SPA that works on SD), but basically +220 SD would be adding +220 damage.
You are including type 5/8 augs (Artisan's Prize?) that can just be moved to a regular item. See the calculated stats above with only type 18/19.
Sorry if someone already said this: I think it would be easy enough to give the evolving items a conversion drop-down menu that lets you elect the version you qualify for ... based on current class and level.
Theres already a script attached to the items tho, the one that lets you convert it to the higher level. They currently can only attach one script to an item I'm pretty sure I remember.
Doesn't stop them from putting some kind of conversion container on an NPC you can buy. Put the cloak in the container, hit combine, pop up a reward window with all the archetype cloaks of that level, pick the one you want.
I don't have a dog in this fight but according to an old (possibly outdated) post on sd, that's not how it works. But it's not far off, it's a pretty useless stat. https://everquest.fandom.com/wiki/Spell_Damage_(Equipment_Stat)
My vote: Just make the chase items all/all and let players turn them in and select a reward that contains all the options (where they will probably pick the tank one). In the future, don't make archetype items.
Yeah spell damage is a trash stat. Would be great if they changed the math to make it massively better. Like, just remove the "/ 7" in "(Cast_Time + Recast_Time) / 7 * Spell_Damage = bonus damage per hit of spell