How about, when I have my inventory or armoury open, the highlighted and greyed out items are based on my retainers class/level and not my own? I've been saving dungeon drops for my retainers but it's a pain in the ass to determine what they can equip or what they will be able to equip in the future (red/blue x's). I also agree with unequipped items going into my inventory if I have the "put items in inventory instead of armoury" option enabled.