This change was actually a fix for an error in the runic crafting code that had previously been identified and then later confirmed when Phoenix was working on the runic reforging system.
The team has discussed this issue and due to the fact that this issue had been around for so long as well as based on the feedback from players it has been decided to revert this damage increase change back to the original 35% value (not including any arms lore bonus).
This should be resolved in a future publish.