After a long battle - I hit L-ALT and it shows me items on the ground but I have to hover my cursor everywhere to find all the bodies to loot - can L-ALT also glow and sparkle all the bodies or maybe this is already in game and I don't know the key/function??

Containers aren't highlighted: I think the Divinities have always been that way, but it is quite irritating.

In my first run, last boss, the big void momma fell on a bunch of magisters bodies including alexander so I only managed to loot like 2 "bodies" including the void monster. So in cases like these, it should be available to highlight ONLY bodies.

I'm assuming this is a result of a decision to not highlight 'secret' containers scattered around the world, but I agree it would be nice to be able to highlight corpses since it's often tedious having to make sure you checked them all after a fight. The looting itself is fun, just not so much the zooming in and pixel hunting overlapping corpses.

Especially since they might sometimes be tiny piles of ash or ice.

Pro - Tip: Click teleport. It will highlight all bodies in the casting range and even some things you may have missed