Yes, sorry Rag. Was writing from the airport after a long day - my reading comprehension suffered greatly

OR... What Ragnarok is suggesting, and I totally 100% want this now:
Your MC picks will be encumbered if they pick up anything over 5 pounds. You pick up ring mail armor weighing 40 pounds. Instead of being encumbered, the game automatically transfers for you the suit of ring mail armor to Lae'zel, the next person in your party. You didn't have to click a thing, and your MC doesn't become encumbered at all. Quality of Life. The game does FOR you what you COULD and almost certainly WILL do yourself manually.
One minor tweak would have to be that it only does this IF a companion is within a certain range of you and if playing Multiplayer, it wouldn't automatically shift an item to another player's MC. It would only work shifting to NPCs.
Ideally, I would vote for single, combined party inventory (like in Pathfinder), but I think this is a great middle ground. Inventory sharing could be limited to characters under that player’s control, so other players characters wouldnt get encountered without their imput.
Great idea Rag, I hope that Larian overlords will hear you.