Crossfire Forum

The Special Dagger from the Old City quest is actually a somewhat useful item -- a dagger that does sword damage, with no item power. Interestingly, Mostrai had no problem upgrading it to a weapon of Mostrai, which seems wrong for a quest item....

Note that unlike some games, crossfire doesn't really differentiate quest items or protect them in any way. You could just as easily alchemy that dagger, sell it a shop, etc.

IIRC, the only thing really special about it was that it was called special dagger (I think all non magical items have 0 item power, so even that isn't special)

So I'm not sure if this is really much of a bug, or more of a design feature/failure.