Mob wielding an orb but nothing on corpse
 

I saw Guard Sheg in East Freeport with an orb in his Secondary (a sword in Primary). When killed, he only had the sword on his corpse, even though he was still visibly holding on to that orb after killed.

What is this phenomenon?

Someone quit and gave him a manastone.

How would that make sense if manastone is tradeable? Would have to be a nodrop item, yes?

Giving no drop to npc/pet should just destroy the item, not have the character equip it.

Someone could have given it an item then another person pick pocketed it. I believe that sometimes leaves the item displayed but missing from inventory.

But you can’t pickpocket magical items, right?

I noticed the same thing when killing a shadowed man. Sometimes they are wielding an orb, but no orb on the corpse. It somehow makes more sense since these mobs can be priests, but to see Guard Sheg with an orb felt a bit odd, since he's a Warrior.

If an item is given to a mob while it is not charmed by a player, it will not drop the item. Maybe it displays it, though.