Cannot be used as transfer material

Hello , after i applied a saved tripod from my tripod inventory on a piece of gear that piece of gear says in red lettering when you hover over it cannot be used as transfer material.

Does that mean when i craft the chosen set from the t3 hard dungeons i cant gear transfer my epic gear into it ?

all it means is that you cant move tripods to or from that piece.

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So , if i then craft the 1340 legendary set , i will be able to transfer my epic set into it to get the legendary +6 1340 chosen set like i am supposed to, right ?

yup

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