A thought...from this link you gave https://en.uesp.net/wiki/Online:Chrysamere_Style
If it is not a coincidence that this blade enters ESO on the Summoning day of Azura and comes attached with a banner of Azura as well, then would not Azura factor into this lore a bit too. How she would might have to do with the Dwemer maybe? Could the Dwemer have crafted it and Azura taken it in response to the trick they played on her - maybe even changing them to something else as well because of this trick:)