Just Reached New Game + and Can't Upgrade Blades

I was doing a challenge where I started new game and beat it with no upgrades. I finished it and started new game plus on that file.

I'm about to head to svartalfheim to find Tyr but I can't upgrade my Blades. I upgraded my spear to 9 and Axe to 8, I have 6 chaos flames and my Level 1 Blades don't have the option of upgrade. What do I do?