So when I try to equip an item, it equips it normally and works. But when I select another item, it should make the text become "Equip" even though it stays at "Unequip". And once you select another item and press the Equip Button that says "Unequip", it'll make the tool disappear and make the new tool equip to the player. Does the same thing to other tools. They're all located in the "Swords" folder in my Backpack. But it seems to be that the item that disappears goes into the Backpack folder instead of the "Swords" folder.

https://gyazo.com/5f43e9d99e8162689f161efd686fbd6c https://gyazo.com/32ecbf264a7bac1851ef1a5d07d5757d

Equip Script: 

local player = game.Players.LocalPlayer
local character = player.Character
local items = {}
local buttons = {}
game.StarterGui:SetCoreGuiEnabled(Enum.CoreGuiType.Backpack,false) -- Makes the original backpack gui invisible

function search(location)
	for i,v in pairs(location:GetChildren()) do -- Find all item in a specific location
		if v:isA("Tool") then -- If the item found is a "Tool"
			table.insert(items,v) -- Going to put all the tools found in a table.
		end
	end
end

function refresh()
	for i,v in pairs(buttons) do -- Finds all items in the table
		v:Destroy() -- Destroy 'em all
	end
	for i,v in pairs(items) do -- Finds all items in the table
		local button = script.Sample:Clone() -- clones the sample button inside the localscript
		button.Name = v.Name -- sets the cloned button's name to the name of the item
		button.LayoutOrder = i
		button.Parent = script.Parent.HandlerS -- Sets the parent of the cloned button to the HandlerS
		button.Image = v.TextureId -- Sets the image of the button to the texture id of the tool
		table.insert(buttons,button) -- Inserts the button to our table "buttons"
		button.MouseButton1Click:connect(function()
			if script.Parent.HandlerS.Selected.Value == nil or script.Parent.HandlerS.Selected.Value ~= v then -- Checks if the selected value is nothing or if the selected value is not the button
				script.Parent.Frame.ItemName.Text = v.Name -- Sets the TextLabel's Text to the name of the tool/button
				script.Parent.Frame.ItemInfo.Text = v.ToolTip -- Sets the TextInfo's Text to the Info of the tool/button
				script.Parent.Frame.ImageLabel.Image = v.TextureId -- Sets the image label's image to the texture id of the tool
				script.Parent.HandlerS.Selected.Value = v
				if script.Parent.HandlerS.Selected.Value ~= script.Parent.HandlerS.Equipped.Value then --if the selected value is not the same as the equipped value then
					script.Parent.HandlerS.Location.Value = v.Parent -- Sets the value of our location to the parent of the tool whether it is in the backpack or in the character
					script.Parent.Frame.Equip.Text = "Equip"
				elseif script.Parent.HandlerS.Selected.Value == script.Parent.HandlerS.Equipped.Value then -- If the selected value is the same as the equipped value then...
					script.Parent.HandlerS.Location.Value = v.Parent
					script.Parent.Frame.Equip.Text = "Unequip"
				end
			end
		end)
	end
end

function backpackRefresh()
	items = {}
	search(character)
	search(player.Backpack:WaitForChild("Swords"))
	refresh()
end

backpackRefresh()

player.Backpack:WaitForChild("Swords").ChildAdded:connect(backpackRefresh)
player.Backpack:WaitForChild("Swords").ChildRemoved:connect(backpackRefresh)

character.ChildAdded:connect(backpackRefresh)
character.ChildRemoved:connect(backpackRefresh)

Equip Button: 

local equipped = script.Parent.Parent.Parent.HandlerS.Equipped
local selected = script.Parent.Parent.Parent.HandlerS.Selected
local location = script.Parent.Parent.Parent.HandlerS.Location
local player = game.Players.LocalPlayer
local character = player.Character

script.Parent.MouseButton1Click:connect(function()
	if equipped.Value == nil or equipped.Value ~= selected.Value then
		character.Humanoid:UnequipTools() -- Forces the player to unequip the tool that they equipped
		if location.Value == player.Backpack:WaitForChild("Swords") then
			character.Humanoid:EquipTool(selected.Value)
			equipped.Value = selected.Value
			script.Parent.Text = "Unequip"
		end
	else
		local children = player.Character:GetChildren()
        for i = 1, table.getn(children), 1 do
            if children[i].ClassName == "Tool" then
                children[i].Parent = player.Backpack:WaitForChild("Swords")
            end
        end
		equipped.Value = nil
		script.Parent.Text = "Equip"
	end
end)
Anonymous