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Except the essence for the lower arm has already been paid for. When you buy a full arm, it includes the lower arm. The modular connector is only supposed to allow you to swap out that part. It is still a part of your full cyberarm that's already been replaced.
Yes, a modular connector attached to flesh costs essence, and you don't get the rest of the arm for free (essence-wise). Any cyberlimbs that you are using you should be paying for with essence. But when you are just replacing a piece of a cyberlimb you already have, you don't pay the essence cost again.
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