sometimes randomly when I go to loot somehitng, it says I cant hold it even though i can hold 120 more in weight. Once when this happened, a sword and one of my quest items dropped. I was informed by a guild member who also had this happen that eating an apple works (so seein how i had 30+ of them i ate one) and I could pick everything up. The second time it happened, it happened when i tried to loot an apple, but after eating another one, and picking it up, the system window said \"i picked up\" followed by some wacky symbols. here is a screenshot of this and to prove i could carry more:
PS (I still had 6 slots left in my inventory)
