The Helm of Flowing Time is a plate helm (war, clr, pal, shd, brd) but can only use armor ornamentations that fit in cloth/leather armor. It would be cool to get this fixed since people have to pay for the ability to use hero's forge and buy the ornaments.
Not a bug - done this way intentionally as "hide my helm" was a later feature, and many folks in the Velious-PoP era wanted no graphical helmet displaying, and the only way to do that was with cloth armor.