Amelia, I have just logged on to the game and crafted a Wrapped Crowsbeak Hammer and the associated Steel Crowsbeak Hammer with no issues like you had. I did have a problem changing to LTW as it said there was no inventory space in my armoury (there was) but that's another issue!

It looks like it's definitely a bug in either your character or your files. Something you could try is to buy the Steel Crowsbeak Hammer from one of the NPC shops (there's a few places sell them) and try using that as an 'ingredient'. That way you will know if there's something wrong with the crafted ones you're trying to upgrade to wrapped.

Good luck.