Yes, you will simply not gain the second ability. The character will still gain Bold 1, Tough 1 and 2 extra HP.
Post WotC: Alpha Trion Protocols
What happens if I play this on an 11*+ character and my opponent has a card disabling my cards from scrapping Upgrades on their characters?
[Source: Alpha Trion Protocols Wave 3 FAQ]
They will still scrap a card from their hand, but will not have to scrap an Upgrade.
They would still scrap an Upgrade from one of their characters, but will not have to scrap a card from their hand.