I recently got the Krosis mask for my Bosmer archer and upgraded it. I was only able to upgrade it to flawless even though I have 100 to blacksmithing. Please help!

Maybe you need to unlock a particular perk like the Arcane Blacksmith, or higher enchanting skill?

Improve your smith level using potions or smithing equipment will help you.

The quality indicator it is just a very rough gauge of how much improvement you have made to the item.

get a ring a shirt or something, an amulet, and gloves and enchant them or buy them, and have them all have smithing enchantments, that works great.