Can I offer a different take on the idea?
Establish three classes of armor or shield condition:
- Undamaged
- Damaged
- Nonfunctional
The base AC of damaged armor is reduced by 2 (to a minimum of 10). The base AC of nonfunctional armor is 10. Strength requirements and stealth penalties are not impacted in either case. The AC bonus of a damaged shield is +1, and a nonfunctional shield is +0.
A given armor type has a maximum number of hit points equal to its base AC value. (IE 14 for scale armor.) A shield has a maximum of 6 hit points.
Every time you are hit by a critical hit, your armor and/or shield takes one point of damage. If you are using both armor and a shield, you decide which is damaged. The equipment is damaged when its hit points are reduced to 50% of its maximum, and nonfunctional when it has zero hit points.
A character proficient with the appropriate tools (smith's, leatherworker's, or carpenter's) can use them to repair armor or shields. They can repair 2 hit points per hour of work, or one hit point during a short rest (and still benefit from the rest). A character who lacks the required tools or their proficiency can still maintain armor which they are proficient in using, removing damage at a rate of one hit point per hour (and none while taking a short rest). In this case, however, it is not possible to improve the equipment's condition class, so damaged armor cannot have hit points restored above 50% and non-functional armor cannot be repaired. A mending spell repairs 2 hit points of damage with each casting, but cannot repair nonfunctional equipment.
Magic items and shields are not damaged by ordinary critical hits, but may be damaged in other ways as determined by the DM. They may require special means of repair as well.
That provides a little bit of realism and a reason to take tool proficiencies or the mending cantrip, but in most situations you can assume that characters with the time to maintain their equipment will be able to do so.