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If I understand correctly, durability doesn't work like item hp and someone has to deal enough damage from a single strike to break your weapon, right? So basically only weapons that can break from hitting armor is knife with 6 durability and improvised weapon with 3?

Essentually yes. Worth noting though you can pick up the Backstab heroic ability to circumvent the armor. And if you play with the optional rule, you can bypass the armor by rolling with a bane when using knives.

The rule about breaking a weapon against armour is for the most part used if you try to hit solid objects, like a wall or a door. Walls and doors can have quite high armour rating.

Another potential use of durability in house rule territory is to make it a test. If a weapon is in danger of being damaged for whatever reason, just roll against the durability. They are very conveniently in the d20 roll under territory.