According to TiresomeTeddybear, an update in the game changed how it works.

Originally posted by TiresomeTeddybear:

Thanks to the Nov 2020 update, you can now use weapons as items without needing to attach them to a character's command list.

1. In battle, go to the Items command.

2. While hovering over Re-equip, press the Confirm key (Default - Xbox: A, PS: X, Keyboard: Enter).

3. Notice the two cursors: one hovering over the character's weapon, and one hovering over the first of any possible weapons to equip them with.

4. If your weapon has an ability attached to it, press the Menu key (Default - Xbox: Y, PS: △, Keyboard: Tab) and you'll be taken to the target selection window. Choose a target and press the Confirm key.

Now you can use weapon abilities without sacrificing an augment slot!

First of all, a character can only use a weapon as item if they have it equipped. These skills count as a "Battle Command" for that character.

After equpping the desired weapon, go to "Abilities", and select the character.

On the right side of "Battle Commands", choose the command you want to replace:


After, that, go into "Items" and select the desired weapon:


Voilà! Now you'll be able to use that weapon's skill in battle. You can do the same process for Auto-Battle Command.


Note that I couldn't find a way to know what skill a weapon has beforehand. Luckily, I also provide a list of such skills in the section below.

Aura Staff — Dispel — Removes positive status buffs from the target.

Dancing Dagger — Dancing Daggers — Non-elemental damage to one enemy.

Defender — Protect — Raises physical defense by 1/2 of current defense.

Elven Bow — Shell — Raises magical defense by 1/2 of current magic defense.

Faerie Rod — Confuse — Inflicts Confuse status on target(s).

Flame Claws — Fire — Low Fire damage to target(s).

Flame Lance — Fira — Mid Fire damage to target(s).

Flame Rod — Fire — Low Fire damage to target(s).

Flame Sword — Fira — Mid Fire damage to target(s).

Gaia Hammer — Quake — Earth damage to all targets. Float negates this spell.

Healing Staff — Heal — Slightly recovers HP of all allies.

Holy Lance — Holy — Holy damage to target.

Ice Claws — Blizzard — Low Ice damage to target(s).

Ice Lance — Blizzara — Mid Ice damage to target(s).

Ice Rod — Blizzard — Low Ice damage to target(s).

Icebrand — Blizzara — Mid Ice damage to target(s).

Lightning Claws — Thunder — Low Thunder damage to target(s).

Lilith Rod — Osmose — Damages target's mp, restoring mp to the caster.

Masamune — Haste — Target's ATB gauge fills faster.

Mythril Staff — Basuna — Removes Berserk, Confuse, Paralyze, or Sleep from ally.

Polymorph Rod — Pig — Adds/Removes Pig status for current target(s).

Power Staff — Berserk — Target will only Attack random opposing targets, 1.5x normal damage.

Rod — Mage Arrows — Non-elemental damage to one enemy.

Rune Staff — Silence — Inflicts Silence status on target(s).

Sage's Staff — Raise — Revives target. Kills Undead targets.

Sleep Blade — Sleep — Inflicts Sleep status on target(s).

Staff — Poisona — Removes Poison from ally.

Stardust Rod — Comet — Non-elemental damage to all enemies.

Stoneblade — Break — Turns target to stone. Instantly kills enemy target.

Thunder Rod — Thunder — Low Thunder damage to target(s).

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Found a mistake, or missing information? Leave a comment so I can fix it!