Issues with rebuilding of captured ships

[seawolf]

When did you start the game - 1900
What nation were you playing? England
Were there any start options that were not the default? Manual legacy fleet
Describe the issue in detail.   At the end of a war with italy I received a battlecruiser as a reparation.  I could not rebuild it as it as Italy’s tech level and guns applied to the rebuild, not mine.  I tried improving from -1 quality to 1 14 inch guns and that didn’t work because (I supposedly) had only -1 quality despite having those guns since 1914(Italy still had quality -1).  I also tried converting to a CV but Italy had not unlocked carrier conversions.
What were you doing when the bug occurred? Finished a war in the early 1930s against italy
Can you describe how to reproduce the bug?  Have not figured out what triggers reparations
What version of the game were you playing 1.03

[aeson]

If I recall correctly, the default yard to use for a rebuild is the yard which built/last rebuilt the ship; for an Italian ship taken as war reparations, that would most likely be Italy. Did you check the building yard to make sure you were doing the rebuild in the local yard?