I got this from the astal lockbox and it comes legendary and since upgrading it to mystic won't increase item level is there any other reason to do it. It has 4 slots but the one I want to use when I put it in the stable only uses 3-shepherds devotion which does a lot for other players on dungeons. If I get a 4th one will that screw it up? The insignias will be mythic when I am ready to use them, and hopefully my il will go this time.
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If you're lucky, you can add the fourth preferred insignia (and get 20% extra IL and stats) and keep your three slot bonus.
Sometimes you can add a fourth non-preferred insignia and get your three slot bonus.
Otherwise you might end up with an unwanted four slot bonus.
It's a shame you can't use two of the same mount!
Anyway, there are some new bonuses coming next module, so it might be time to reconsider them again soon.
It means it 'prefers' you to use the type of insignia it specified.
It is 'Universal'. That means you can put any type of insignia. It prefers you to use 'Enlightened' in the above example. You don't 'need' to put the preferred one and it does not say you need to. If you do put the preferred type, you get 20% more stat.