You're not supposed to loot other people's mobs like that.
If I see someone killing guards, and they're sitting on their ass 10 feet from the corpse, I'll assume they've already taken what they want and I'll loot the remaining shield or crude stein. If it's a bard swarm kiting, I will assume they're too busy to have gotten to the loot yet and I'll leave it be.
Seems like common sense and neighborly behavior to me.
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