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What level are the creatures? Are they 5-150 for you or 1-30? If it is 1-30 then that probably explains the crappy loot.
Another thing is that if you open supply drops with rings then I think they get both better quality items and more items.
The best item I got so far is ascended crossbow with 349.1% damage.
You need to loot the high level supply drops to get better items.
I got a giga saddle from a red drop today (lvl req 96 to craft but I am lvl 75).
Red drops have the best items. Yellow and purple are great. Blue is decent. Green and white is almost useless.
Southern map have mostly lower quality supply drops and top map higher quality.
Unless the settings have changed, its a totally different setting to adjust the quality of drops than difficulty. You can have a standard difficulty and totally bananas drop loot quality.
This is probably what has happened. Streamers and YouTubers need an engaged audience and need those views. So they alter settings so things seem "so amazing" when they play the game.
Creating a world in Easy mode now sets this to 3 by default.
bring gas mask or scuba gear with ghilli gloves (ghillie gloves and boots seems valid too)
and a frog
got a nice 200+ armour rex saddle bp from swamp cave