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Not sure if this is a bug or if I'm missing something. After completing a quest for the commander at the Harbour you can in return either upgrade your Guard's Armor or learn about spider traps. I gave my armor to the smith and after picking it up I don't notice any improvement in agility. The smith told me I'd even be able to sprint, but I still am as slow as before. Anything I'm missing, or is this a bug?

You can get the armor upgraded twice. The first time, you can move slightly faster but it's not much faster than the base version. The second time it's upgraded, you can run (but not on all fours) and move as fast as you would when you run normally without armor.