So I have been thinking about this a lot.
Starting from what Blizzard said - If you kill Fyrakk on higher difficulties, it includes the drop chance of lower difficulties, meaning you don’t need to do them, aka lower difficulties will not drop the axe anymore.
Here is what I think:
Let’s assume the base drop rate is 1%
LFR gives you ONE chance at the axe, at 1% rate.
Normal gives you TWO chances at the axe, at 1% rate each, meaning you roll a 1% rate twice, independently. Effective drop rate calculated as → 1 - 99%^2 = 1.99%
Heroic gives you THREE chances at the axe, at 1% rate each, meaning you roll a 1% rate three times, independently. Effective drop rate calculated as → 1 - 99%^3 = 2.87%
Mythic gives you SIX chances at the axe, at 1% rate each, meaning you roll a 1% rate six times, independently. Effective drop rate calculated as → 1 - 99%^6 = 5.85%
To me this is the only way it makes sense. You can think of this as doing scratch-off lotteries. Each lottery ticket is 1% wining chance, you get 1 ticket from LFR, 2 tickets from Normal, 3 from Heroic and 6 from Mythic. And of course if you do lower difficulties first, the higher ones will only give you the difference.
However all of the above are just calculations and theories. In practice I think doing Fyrakk from lower difficulties and all the way to the highest gives you more chance at the axe, compared to just doing the highest you can from the start. This is because of the bad luck protection:
You do LFR first, axe does not drop, but you get the item that increase your chance at the axe, let’s assume it increases the base rate by 0.1%, which makes your base rate 1.1% now.
Then you go do Normal. Because you already did LFR, you only get ONE chance at the axe instead of TWO, but this one chance is at 1.1% instead of 1%. Overall this is a higher chance of you getting the axe in that reset compared to you just doing Normal.
Chances of you getting the axe by doing just Normal: 1-99%^2 = 1.99%
Chances of you getting the axe by doing LFR first then Normal: 1-99%*98.9% = 2.09%
Unless the bad luck protection only goes into effect at reset, doing all difficulties from low to high would be your best chances at the axe.
But anyway that’s too much work I think I’ll just stick to the highest difficulties LMAO.