IIRC, World's Edge Armor specifically states that the armor is destroyed. I also believe that Magic Armor replaces your mundane armor, though I'm not 100% certain on that. (Not even 75% certain, really). If that's the case, then no, you'd be S.O.L. on armor unless you have a shield and/or scaly skin.
If magic armor doesn't replace your mundane armor, then yes, you'd still be equipped with that.
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