It seems this wasn't fixed in 1.108...even if the patch notes say its fixed.

[Unknown]

The patch notes for 1.108 say:

- Adventurers should now properly equip any upgrades sold to them.

However this doesn't seem to work.

I sell "romantic cape" to charme:

http://img849.imageshack.us/img849/1601/23352366.jpg

But after seeing her status, she doesn't equip it:

http://img269.imageshack.us/img269/6740/71106426.jpg

However, if i go to a dungeon with a "romantic cape", charme will auto equip it.