Asura.Malekith said: »
Going with the former rather than the later... I know SE's gotten lazy but allowing us to spend merits to zoom past the second stage in a magian trial makes the least amount of sense given their approach thus far to ToTM.
just used google translate on the other languages so while not the best translation it does clarify that stage 2 augments tier 2 merit abilities . (the links are to the pages in original languages translate them as you want)
german to english: Second Level: Armor Item merit points improved properties
french to english: Step Two: improved characteristics obtained with merit points.
Japanese to english: Point increase in the performance benefits associated with second-stage