I am new to this game but this is a show stopper for me. Equipped items should NOT be in your inventory. Why would they be? A sword is in your hand. Not in the bag with your potions and such.
I have never seen such nonsense in any game. Out in the dungeon, you find new items all the time.. You compare them and equip the upgrades. I personally do not make a note of the names of equipped items. Who does?
They have their own tab, IIRC. It's one of those subjects where some people prefer stuff a particular way, others don't; a bit like being able to sell quest items, something I hate, but other people are very insistent about. Sorry you had to discover this particular "feature" the hard way though. I suppose at least it's balanced out by having multiple saves, having just played two games in a row that take the One Save To Rule Them All approach...
