Did it give you a choice? I think it usually does, but as I recall I once got a refit of my con tower late 44 in a Gato that I kept throughout the war and had no say in it, but I didn't lose anything. If you have the choice all you can do is go back to your save point before port and refuse the upfit.
Yep, if you take a newer sub you lose a lot of your newer equipment, which is silly. Without reknown, you're stuck without it. My guess is it's just something TMO didn't change. Like they would send a newer class sub out to sea with WWI equipment or none at all.
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