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What does it mean by universal ornament?
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It means you use it to change the appearance (aka transmog, in essence) of the gear to that of the ornament.
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But it has to be Shadowkeep armor in order to work?
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On your character screen, just inspect any piece of [b]legendary[/b] gear, then scroll down to "appearance" and you'll see it there.
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Even if I have legendarys from before the new armor 2.0 system?
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Yeah, like DCbaseball said, only legendary armor 2.0 will have that feature. Basically any new legendary armor dropped from activities will have it.
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It has to be an armor 2.0 legendary piece