I've actually identified a bug with this that is reproducible.
It only occurs the first time in a game you have to identify an item. If the item and the identifying glass are in different bags AND neither item or glass is in the bags of the character with the loremaster skill you will receive the message skill too low. Once you put the glass and item into the bags of the character with loremaster you will be able to identify that item and all other items even if they are not in the same bags. Again this only occurs the first time you identify an item.