Magic Shield (KQGS)

The Magic Shield exists in old man Graham's bedroom.

However there is no reference to it within the first chapter. Also it doesn't look as if Daventry is suffering from any invasions by other nations at the time of Graham's teen years (other than an invasion by underground stone goblins). The kingdom is roughly peaceful, the worst things happening is that the townspeople are going poor (Edward is not paying them), but has a large guard force (which Edward has chosen to pay for rather than upkeep of the kingdom). Beyond a strike with the Troll Guild, and a unwanted moat monster, the loss of soldiers training in the Dragon Cave, there isn't much else 'dangerous' going on in the kingdom directly.

In chapter 1, there is no indication that the shield was stolen, as there is clearly is with the Magic Mirror. The fact that the kingdom is largely in peace, and even described as remaining largely peaceful throughout most of Graham's knighthood (following the tournament), there is no evidence it was ever stolen in this universe.

If this was stolen from Edward, based on comments in Chapter 2 it was stolen some point after the knight tournament and before the Chapter 1 prologue, and was recovered before the magic mirror.