With a randomized system in which (for instance) worn items are 50% more likely to be selected for loot than bagged items, one can still bag that fungi tunic or fbss to increase the odds of keeping it yet there is still a chance it'll get looted. But it isn't like free form item loot where someone it taking your fungi 100% of the time if you didn't bag it. Combine this with item linking in the YT and the removal of all no drop tags.
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