Was your pet a quest NPC and he innately spawned with that dagger?
Also did you happen to feed him those items while you were non-KoS maybe with earth elemental/collaboration, before you charmed him?
Quest NPCs eat items given to them to prevent an exploit. Also it's coded on here for only items when given to a charmed pet to be retained. You can't give to a friendly NPC. This is a bug from how it was originally implemented.
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