There are eight traits for weapons and eight for armor, they are the same across all trade skills.

Armor (Quartz, Diamond, Sardonyx, Almandine, Emerald, Bloodstone, Garnet, Sapphire)
Weapon (Chysolite, Amethyst, Ruby,Jade,Turquoise,Carnelian,Fire Opal, Citrine)

Refining raw resource gives random traits (weapon or armor) so I guess that's odd since cloth has no 'weapon' options. Maybe its for cloth weapons (Expansion Leather whip)

Breaking down a piece of armor tho, never gives weapon traits and breaking down a weapon never gives armor traits.

I know its daft to say but have you bugged it in game?

Reason is this area is to discuss crafting not bugs even if they are about crafting. chances of a Mod seeing it and dealing with the issue are the same as me winning this weeks Euro millions.

I have seen it too and thought it was wierd. Convert some raw wood or fiber plant and get a gem stone in the process. I can only assume this is done because as a carry over from the ore as they too can create gem stones during the conversion to ingots and people don't necessarily feel surprised by it.

But for my two cents, I wouldn't expect to find any gems in the conversion process at all. The heat from converting the ore would destroy in gem hidden in it and there wouldnt' be any gems in wood or fiber.

It wouldn't hurt my feelings if they took that option out completely.

But with that said, deconstructing an item could yield those gems as they could be set in the hilt and easily extracted.