I have not played with quality AT ALL so I may be entirely wrong here, but my understanding is that when the game spawns an item drop, it first chooses a quality multiplier, then it looks at the list to see what to call the item. So before it even looks at your list it will have created the cloth hat with a 1.29 multipler to armor and durability. If you’ve deleted everything in that list, then it just names it “Cloth Hat” but it still has a 1.29 multipler (or maybe it crashes if you’ve completely emptied the list).