Game Mechanics: Cant give items to non quest npc

[Jigga]

I was fooling around and had some stupid gear and i wanted to give to guard and skeletons and stuff to dress them up with weapons and shitty banded to like naked npc. They dont equip it and just eat it. I gave some gear to some low lvl npc and it didnt show so i decided to be an indian giver and take it back if he wasnt going to use it and it was gone.

I cant claim 100% this is a bug my memory is so shot but i remember seeing npcs dressed up in gear on live. Like you could see priest of discord with gear handed to him