When you click on the armor to convert it, if you select to "go back" option instead of the gear in the reward window it downgrades the item to "Glowing Reis" items, and the gear is about 30% of the original gears stats.
Glowing Sebilisian Wristband. Click claim, reward box pops up with the correct piece of gear and correctly has both the new item and the item can revert back to (in case you want to trade them, whatever). However, it returns Glowing Reis Wristband not the Glowing Sebilisian Wristband. It looks like the rewards for the orignal unclaimed item are just linking to the lesser items from HH Crushbone and Permafrost Keep instead of HH Sebilis. Since the Reis gear is far lower in stats, its going to create situations where gear is lost/downgraded unintentionally which Im sure will cause support tickets.