I have all 3 forges but I am only able to make swords and upgrade swords. I seem to be able to upgrade the first 2 forges with swords but when I select the 3rd forged sword it upgrades my steel helmet. I am unable to make any other helmets or armor. It does not give me the option like it should to choose what i want to forge just says what type of forge and then forge.

I found a solution. I was using the xbox 360 controller with the game on PC and I disconnected it and the forge works as it should.