Never had a character have both a magic and a fabled anything; that does sound like a bug. On the armor, His_Bastardlyness, adding magic armor doesn't change any flags, it just adds to the character's hidden dodge_rating stat (which is also capped, at 4; kind of a low cap, but I think Enlil's blessing, which also raises dodge_rating, is repeatable, so this might be meant to prevent that from getting out of hand. Though making the blessing not repeatable would have been better, I think). I would have gone with the flags myself, but I must admit that having played around with the Brothel King code a bit, that game seems to get immensely slow later in the game partly because it does a lot of having flags to check for instead of just modifying base variables, so there can be disadvantages to different approaches. In any event, the listing of which things different items should give bonuses to is in the 01pcdata.rpy file as a dictionary called magic_item_combat_bonus. If they aren't giving those bonuses, then that is a bug.