I was doing some reading about FFXI lore and one thing botered me since WoTG came out. Miuseloir.
Most of us remember how Miuseloir got Ragnarok. If you don't, the TL;DR is Miuseloir's forces entered Beaucedine Glacier through the Batallia Downs tunnel where they were attacked by a Gigas and a force of beastmen led by a demon with a huge sword on his back. The demon challenges Miuseloir to a duel and Miuseloir disarms him, takes the greatsword and kills the demon, that greatsword was Ragnarok. This fight earned Miuseloir an immediate invitation into the Hydra Corps.
During the duel, Miuseloir uses a strategy in which the demon disarms him so he gets overconfident. Miuseloir's previous sword is never mentioned again.
Given its design, its nature, the jobs that can equip it, and where it is found, I assume this sword is the Bloodsword that the NM Lumber Jack drops. How it ended up in or on Lumber Jack is anyone's guess.