I don't see anything wrong with not being able to loot whatever is inside bags. Yeah people will bag things if the fight is taking too long but so what. If someone is able to bag every piece of gear before they are killed the kill took too long.
Item loot doesn't have to be complicated - 1 item, no primary, secondary or range slot loot, no backpack items looted. Done. As for instruments I have no experience with this but would it be bad to have them to be turned into no drop items?
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