As for companion gear, it just disappears with them it seems. All equipment goes with the hero/companion you only get a heads up when your character is near death while everyone else just happens. I tend to be more bummed on the ones in my party more than their equipment because I leveled them up 🥺.
A minimalistic mod for maximum compatibility. Become friends with as many companions as you feel like. Note that this mod just "removes" the cap, but the game has a limited number of companions. There are mods that add/unlock more companions. Downsides/balance: It's very expensive to properly equip all your companions.
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