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Make sure this is the first time you are interacting with that person so that you actually gain a guild seal when you fart on them. If you've already gained a seal off them it won't increase the upgrade bar anymore.
simple way to do so walk around town with the right trigger held down if they have a guild seal over their heads then you can use your fart or whatever to to get seals from them.. also you dont have to hold it down for the longer expression all you have to do is just tap it its what i had to do for one of the swords i got as well :)