Another Aug QuestionFollow

So, having heard that you could turn in Augs for AP (but not yet knowing that it didn't apply to dropped Augs), I went from NPC to NPC in the South Ro camp while we were getting group set up on an LDoN, trying to hand in dropped Augs. I don't remember which NPC this happened with, I believe it was a gnome. I handed him a +10 mana aug, and got the little fanfaire you get when you complete an LDoN, some text along the lines of 'this will serve you better', and got the Aug back, now a +12 mana aug. I wish I had been recording text to verify this, because I started going nuts trying to turn in the other augs I've been hanging on to, namely some +5 int augs, but with no luck. I just kept getting that 'I have no use for this item' response.

Am I missing something here? I was excited because here I thought I was going to upgrade my +5 stat augs to +6's, but nope. Anyone have any insight on this or know of any other NPC's in other camps that perform this function?

Well, it could very well be a bug, if so, they should fix it. But, it doesn't seem like much of an exploit, if it is one at all. I don't play on FV, so, all the dropped augs are no drop for me. And I didn't get any plat, exp, or adventure points for the turn in, so it just doesn't seem like an exploit. Seemed more like that 'turn in the greater lightstone for the research book' from the gypsies on NK. Is that an exploit because one can turn around and sell the book for a lot more than the sale price for a greater lightstone?
I mean, it's nice and all that I got the extra 2 mana from this guy, but, what I'm wondering if it is something that rewards you with a higher level dropped aug from hanging on to one that you obtained while lower in level.