How to remove a cursed item?
A normal Cursed Item can have its curse removed and turned back into a traditional item - allowing you to freely move the item around like normal. A Heavily Cursed Item can only be destroyed and so you can never have the curse lifted from them. For them, it's a case of "like the item and lump the curse" or "not have the item at all".
There are currently 4 ways in lifting a curse from an item (or for a Heavily Cursed Item, destroying it).
Completing a quest: There are 15 quests in the game that are dedicated to lifting a curse. That's 5 for each quest site. While there are 150+ quests for each site, making the random chance of getting a curse-breaking quest rather low, the game will over-ride the random selection from time to time based on the number of games you have played with a cursed item equipped. The more games you play with a cursed item, the more likely the game will force a curse-breaking quest to appear. The exact formula for working out this chance is 3% +(games played with the cursed item *2), maxed out at 50%. The game will also make as many rolls for this as you have cursed items equipped. So if you are unlucky enough to get 7 cursed items equipped at once, you'll have 7 rolls on the above formula to force a curse-breaking quest to appear. However, if you use a cheat at any point with your hero, the number of games played with your cursed items resets to 0.
Once you get one of the quests, completing it will remove the curses off all of your items. Any and all Heavily Cursed Items equipped will be destroyed. (Note that we have plans to limit this to a single item of your choice.)
Visiting specific locations in the campaigns: At some points in the campaign, you'll encounter a powerful character that will offer to remove the curses from all of your items (and destroying your Heavily Cursed Items) for a cost of crowns. These are actions found only at certain locations.
Destroying the hero who cursed the item: For normal Cursed Items only. When an item is randomly cursed, the game will also assign a hero race + class combination that'll be used to determine the hero who cursed the item. This is used to decide what personalised action the owner has done to the item as well (that appended text at the bottom of the item's description). The very first AI hero of this race + class combination you encounter will be used as the hero who cursed your item and their details saved for future battles. Immediately at the start of the battle with this hero being present, the game will draw attention to this via a scene event - one of those campaign conversations. In some cases, your hero and the curser hero will actually have a rather unpleasant conversation with each other. Other times it will be a narrator explaining that something is happening with your cursed item.
Killing this hero with any unit from your side or an allied side will remove the curse from the item that the hero had cursed. If someone from your own army kills the hero, then your hero will be awarded 1000 XP and you'll be treated to a special scene event. In either cases, a message will appear in the centre of the screen notifying you that a curse has been broken.
If the hero was slain by anyone else (or not at all when you left the battle), it's assumed the hero was never fully defeated and escaped still alive. In which case, you miss your chance of having your items de-cursed this time but from this point onward, there will be a random chance that this very hero will appear in future battles and will keep on appearing until you or your ally defeat them. This hero will only replace AI heroes of the same race (their class is ignored) and the chance of this happening uses the same formula as the special quest formula of 3% +(games played with the cursed item *2), maxed out at 50%. Campaign heroes with special data will not be replaced for this hero.
Having your retinue units seek out a Curse Breaker: Among the retinue tasks (found in a campaign's menu - accessed from the world map screen), one of which will have your specified retinue unit seek out someone who can break the curses on your items. Like with all retinue tasks, this will take a number of in-game days to complete and while your unit is out doing this, he can't partake in campaign battles.
From the FAQ on discord by kharn