Does a unit upgrading its gear gain the additional bonuses from upgraded forges,
The bonus from forge is a "Base Bonus" to each defense stat, and doesn't affect armour, so it only gains the bonus from the forges that was in the city, from which the unit was created.
In the current system you have to separate the idea that the forge have anything to do with the crafted weapons or armour, and just think its a static +x to defense, like having the +3 defense trait, but for free.
Hope this clarifies 
Sincerely
~ Kongdej