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I'm seeing this problem in v1.0.3.0526 -steam. I don't know if it existed in previous versions. The first two companions die, and drop gear. That gear can be looted and used. However, if you happen to later return to the zone in which the character that originally had the item(s) died, then the items they dropped will disappear. This happens whether the items are equipped on your character, in your inventory proper, or in your stash. Here's a saved game in which this problem can be seen. Steps to replicate: 1) Load the saved game provided. 2) Open the inventory and notice the Scale Armor on the protagonist and the Dagger in her weapon slot #2. 3) Open the stash and notice the Battle Axe in the last slot of the weapons tab, the Leather Armor in the last slot of the armor tab, and the Torch in the last slot of the other tab. 4) Travel to Cilant Lis. This is the location where Heodan died in my game. 5) Open the inventory and notice that the Dagger in the protagonist's weapon slot #2 has disappeared. The other Daggers the character had are still there. Open the stash and notice that the Leather Armor in the last slot of the armor tab has disappeared. Also note that the other items mentioned (which were Calisca's) have not disappeared. 6) Travel into the Cilant Lis cave. This is the location where Calisca died in my game. 7) Open the inventory and notice that the Scale Armor the protagonist was wearing has disappeared. Open the stash and notice that the Battle Axe in the last slot of the weapons tab and the Torch in the last slot of the other tab have both disappeared. The other Torch is still in the stash, and the Torch in the protagonist's inventory is likewise untouched. (It is interesting to note that the protagonist is still shown as wearing Scale Armor until the inventory screen is opened, but it is in fact gone as soon as she enters the Cilant Lis cave. You can see this by loading the save, traveling to the Cilant Lis cave, then traveling to the Valewood cave and allowing the bear to hit you. Assuming you haven't opened the inventory, the protagonist will still be shown as wearing Scale Armor but the combat log detail will indicate 0.0 damage reduction on the Bear's hit. Also, if you try to switch to the second weapon set you will see that it is empty. So the item disappearance isn't connected to or dependent upon opening the inventory.)