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Ah, that's a tricky one! :) every monster you defeat should free up another card, either armor or a sword. And with each freed card you can defeat another monster. So it's a case of finding the right order. Hope that helps! 

As for the +1/-1 buttons, those just show how the card would change if you'd upgrade it. You can't upgrade the card there, just preview it.

(+1)

I'm such an idiot... I came back and tried it again playing with what order I killed monsters and picked up items, got it on my second try. Thanks for confirming that I wasn't missing an upgrade or something and that it was indeed the order of my actions!

Glad you solved it! :)