Certain things don't age very well and I'm not sure if anyone mentioned,

Dark Cloud

It sounds exactly like what you're looking for and I'm playing through the game right now. It's a dungeon crawler for PS2 with randomized dungeons of different themes with a huge variety of weapons.

Not only do you collect survival and antistatus stuff from the dungeons, you get these specific materials that can be attached to a weapon to increase a particular stat. There are 19 individual stats with corresponding sortable item. Some innate like attack and speed, some elemental, and some type-specific like Beast Killer or Mimic Breaker.

Weapons also have their own XP and Health. If it breaks, it's gone, but endurance upgrades and repair powder aplenty. When a weapon is ready to level up, (this is where it really gets interesting) it can permanently absorb the slotted items and their attributes.

When weapons reach particular levels on particular stats they can evolve into higher tiered weapons. If a weapon is level 5 it can be broken down into an off that can be slotted worth 60%of its stats. Including the starting stats of some weapons, that can be major.

Lock on combat is comfortable. Learning enemy movesets is the challenge. There is a homebuilding aspect that you can half was but I think is very rewarding and charming.

Give it a try

Dark Cloud. Maybe Dark Cloud 2. I prefer 1.