Encumbrance in WotR actually bugged me more than in BG3, though admittedly that's probably because of the way I'd set up my party. Or I might just have been doing it wrong. My party could carry vast amounts of stuff to the extent I never had to think about weight in the shared inventory, as I had two triceratops animal companions. But I also had three very weak characters (Nenio, Daeran and my PC) who couldn't manage to wear the armour I wanted, carry backup weapons or put the stuff I wanted them to have access to in their item slots, or at least not all three at the same time. I ended up giving them strength boosting items which they only needed for that reason and which ruled out other items that would have been more fun. And of course I could have boosted their strength on level up, but I resented doing that just so they could be properly equipped.
Admittedly, I end up juggling stuff from my weak BG3 PC's inventory fairly frequently, but at least she can wear basic light armour and carry the potions and scrolls she needs to use!
I mean, that's exactly the main reason why encumbrance should exist imo: to limit what individual characters can wield in combat. If you chose to dump strength (or not buff via magic items), then you are punished by not being able to carry much for protection/use/flexibility in combat. But in exchange, you have a higher [other stat(s)] that make you otherwise more effective in combat. Choices and tradeoffs.
Whereas moving loot around such that no party member is encumbered while traveling is a process that just takes time, and thus shared (non-equipped) carry capacity is a QoL feature.
This relates to one of my biggest issues with 5e - dump stats. If there exist some (many) classes for which Str has negligible benefit, that's an issue with design. Removing encumbrance (or, you know, allowing Dex instead of Str to be used automatically for all finesse weapons) without adding back a correspondingly powerful use for strength unbalances the system.
