Is there anyone smart who can explain this to me?

How is there an option to transmog Staves into totally unrelated and completely different weapon classes such as axes, maces and most importantly, a sword? OR how is there an option to transmog a one-handed sword into an axe, mace, or even a fist weapon… but there ISN’T an option to transmog a dagger into a sword and vice versa? They’re arguably more similar to each other than maces, axes, and fist weapons.

Make it make sense.

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Sorry, the developers have no obligation to do stuff you understand.

100% true. Thank you for that insight.

Back to my question, is anyone able to explain this?

Let me phrase it more specifically to your approach to the issue.

The developers are infamous for doing things that the user community doesn’t understand, let alone appreciate, and never explaining any of it.

They just don’t answer “why” questions.

So I truly doubt you will get any authoritative answers, only speculation and rumor.

I do believe Blizzard has stated previously that the restriction was due to the combat animations of daggers.

I’ve heard that rationalisation, but somehow it doesn’t apply to legendary weapons, so it lacks consistency.

As I said, they never really explain why. When (rarely) they do, it’s off-the-cuff and inaccurate or incomplete.

Their current policy of schtum is at least consistent.

Well it makes sense. A Paladin cant use a dagger so why would they be able to transmog to a weapon type they cant use. As someone else said, weapon animations probably part of it too.