I upgraded my Flaming Skull to Legendary and it did not increase the stats from 3k combat adv and 1.5k defense to 4k combat adv and 2k defense. I then went to look into why the stats did not improve and found out that the companion is not even giving me any stats at all period. So basically I just wasted a bunch of resources and time for no reason on something that has been broken for months. Wish I would have known ahead of time. Like maybe they could send in game mail letting people know that an item is broken and that you should not invest in it until it's fixed.
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https://www.arcgames.com/en/forums/neverwinter/#/discussion/1258103/pc-flaming-skull-companion-power-does-not-apply-stats
With this game, it is upgrade at your own risk for every single items that exist. Knowing that bugs are rampant, we take our chances and when there are bug, people report. FYI, PC is now beta testers for console, although even bugs make it to console.