Issue with multiplayer loot sharing

I have been playing this game with my friends for a little while now. Although we didn’t get very far we had a blast. A 4th friend got the game and we restarted to play with them from the beginning.

When someone got to the first house and got the moiler, EVERYONE immediately got the gun, same with the binoculars and first aid kits. We liked how it was in our last game where when one player picks up an item or opens a crate none of the other players get the item, as it allows us to specialize in combat. We had it working the day before we started the run.

What changed between this game and the last one? How can we revert whatever we changed or set it back?

As far as i know, this hasn’t never been in the game.
But how that may have worked is that your friends went ahead on their own and collected the gear in their game, before they started playing with you. And once they started to play with you, they didn’t have any free loot to collect anymore since they already collected it previously.

As far as loot containers go (those you can open, bags/boxes), they have 4 gameplay hours of cooldown time, before they restock. So, if your friends opened the loot container earlier and when playing together shortly afterwards, they don’t have loot containers to loot anymore, until 4 gameplay hours have passed since the initial opening of the container.

Also, all the loot in the game is individual. Meaning that players get different items from loot containers. Only those items that are freely placed on the ground/table, outside of the loot container, are same for everybody.

Moreover, there was an issue with freely placed weapons and collectables, topic: Co-Op to Single Player Collectibles, where when you were client in someone’s game and picked up the weapon or collectible, it didn’t register in your own game. Devs fixed that issue in December '20 update,

[Community Report] Improved how Collectibles are recorded so that players who pick up Collectibles in someone else’s game will have that recorded in their game, rather than it previously being recorded for the game host, not the player picking up the item; this fixes issues retroactively as well

Source: https://generationzero.com/en/blog/december-update-patch-notes

There is a setting in the multiplayer menu called “share structure inventory contents”. Set it to the opposite of what you have it at.