I have found many players (myself included) get stuck in this quest where you're meant to level your legendary weapon to level 10 before continuing. Thing is, even the weapon has reached that level, the NPCs aren't recognizing the fact.
As a result, you've no access to the Legendary Weapon system, and neither Moria, which Quest Pack I recently bought at the store for a good amount of TP.
So far this issue can only be solved with the assistance of a GM; however this assistance is only restricted to VIP or subscriber members. While I understand those members should get a preferred assistance, I also believe that this situation is a result of a bug in the system and, therefore, should be able to be addressed for any player, regardless of their status.
In fact you are not meant to talk with Forge Masters (both Rivendell and Thorin's Hall ones are disabled until you gain access to Moria) but I tried the same thing with Dithalion (which is an NPC standing next to the forgemaster at Rivendell) and he also has the blue ring icon above his head, expecting me to level the weapon up to 10.
The "levelling disabled" picture was merely to clarify that the item is indeed the one you're given at the quest chain.
Apparently with other legendary items, they can still level even if not equipped as long as they're slotted in one of the legendary panels.
I added that screenshot because in some of the threads I pointed out, there was said that you must use the weapon you're given at the chain quest, and that is exactly this case.
The only forge master you can use when the volume 2 book 1 is not completed yet is the one at Eregion.
However, if I try to reforge the Legendary Item there, I get the error "You cannot use Legendary Weapons until you have access to Moria" as can be seen here:
If the only way to workaround the issue is through a GM intervention, I believe even if you're a f2p player you should have access to this, particularly in situations where, same as I did, more than a thousand Turbine Points have been spent at the LOTRO store in order to get the Moria Quest Pack that, as of today, cannot even be accessed to, for its doors are meant to be opened during this questchain.
Amongst all the interesting new features that Update 9 brought us, I was particularly excited about this one regarding Legendary Items:
"Players will be unable to use Experience Runes on IA weapons until they have completed all quests in Volume II Book 1."
With this one of the possible issues that ends up in being unable to enter Moria, should become fixed.
Now that Update 9 is live, I went online with my stuck character Nadvett, who is told to level his Legendary up to level 10 and then go back and speack with Dithalion (Rivendell) or Wafi (Thorin's Hall) in order to proceed.
Not being allowed to complete this quest chain does not only forbid from using LI but also from progressing further in the game, as it doesn't allow you to enter Moria (and that also means you're banned from Rohan, Isengard, Lothlorien...)
It seems update 9 placed some patches to at least a known way to get stuck by this quest, by disabling the use of legendary XP items, but left out a tool to be used for those characters already stuck there due to the bug.
I have seen how some other bugged quests, such as "Bill the pony" at Eriador, where fixed in update 9.1 and that implied those characters having it seeing it removed so they could pick it up again and complete it normally.
Problem is that this particular quest ("Worth beyond measure") cannot be cancelled by users. It would be convenient to provide a workaround to those users who got stuck there, if only by means of cancelling the quest and having they start it anew. That's something I wouldn't mind at all doing.
I've filed up a bug request pointing to this thread with hopes that some workaround can be put into the game so that characters who got stuck by this, can have a way to finally enter Moria and use the Legendary item system.