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Kinda.
You keep everything you have equipped, meaning if something breaks or you touch the water you can still be in trouble.
But anything else still gets dropped, so it's easier to retrieve your stuff but you still kinda need to do it.
BUT, after death you can just log out, set your world to hammer mode, and waltz back to the place of your death in total peace, as NO-ONE will attack you!
Once you've retrieved your stuff, you can turn your world back to a difficulty level of your liking.
The world modifier is an option. You keep your armor, the weapon or tool you had eqiupped... but food, mead and so on will be in your gravestone. So have some in stock at home.
I dislike that inventory loss system too. Wehenever I have a game that uses such a mechanic, I look for a way to turn that off. Usually. Valheim is the first game in which I actually try to embrace that and adapt to it. By e.g. having backup equipment at my base (at least the sets from the former biome).
And if all else fails... sneaking out to your gravestone, get your things and run away works much better than I expected.
1. I usually have a portal nearby. Placing a portal as soon as you hit land is a MUST.
2. Have enough food at home, so you can take a few hits.
3. BONUS: Although you can do naked corpse-runs, and they usually work just fine, sometimes it is best if you have some gear that you can use. It just makes things easier.
Once you get into Swamps and past them, you will always have the gear of your prior biome to fall back upon. Don't let it go to waste!