The second option is much like I was already planning on, so I'll be going with that one. I may spin out repairing the sword into a third part of the plot if I can figure out how to do it (which will make it take longer overall too).
I honestly wasn't expecting that aspect of Caladbolg to have any sort of easy equivalent in this game. It was still difficult to cleanse Orr, setting aside Caladbolg's abilities, and I wouldn't want him to be able to wave the sword around and instantly make something happen. I'd be fine with Caladbolg simply not being able to cleanse anything in Konryu, though I'd like for the sword to still be magical in general as outlined through its other abilities.
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I honestly wasn't expecting that aspect of Caladbolg to have any sort of easy equivalent in this game. It was still difficult to cleanse Orr, setting aside Caladbolg's abilities, and I wouldn't want him to be able to wave the sword around and instantly make something happen. I'd be fine with Caladbolg simply not being able to cleanse anything in Konryu, though I'd like for the sword to still be magical in general as outlined through its other abilities.