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So not quite as harsh as valheim where you also drop your gear and stuff.
Can we for those of us that Host our own Dedicated server have an option in the config file to turn this off? Plus many other options in the game too please.
Perfect!
The game isn't as bad as you might think. If you're into its graphics and gameplay, it's definitely worth giving it a try. I've messed up and died a bunch of times, but I've always been able to get my stuff back. Also, if I remember right, you don't lose much from your inventory when you die. In my opinion, Enshrouded should either get rid of item dropping when you die or just make you drop everything. It would make more sense that way.
Losing crafting materials sucks early on, but once you get the hang of things, you will find you have too much. You will learn what drops stuff you need and it becomes second nature.
Lockpicks and coins dropped off my hotbar before when I tested it. I don't think hotbar keeps it safe.
Getting loot back has never been an issue. The big issue is friends being able to grab yours in situations where you both died. I always remember where I died. I have an amazing photographic memory, but not everyone has the same memory as me. It isn't the end of the world, but QOL helps my stress. I dislike it being a debate when my memory proves right over and over again.