Definitely true for heroic. You can go ahead and edit that in the post. I'm sure normal and LFR are affected by this as well.
Guildy said they can't trade m+ loot either
I'm going out on a limb and guessing this is due to the legendary loot change, and they reset the ilvl your character's slots are registered as equipping, so until you re-equip something else it'll say it's an upgrade.
Minmaxing extremity though, that loot can be replaced by normal and heroic gear very easily. They literally care about getting minor loot for world content.
ahh the classic spaghetti codeadding new raid and items %^&*s up the old one