You can find weapons and armors in the dungeons, yes but it works a little differently. After the boss and the mini bosses a treasure chest will appear with a random item. You then have 3 options: Need, Greed, and Pass. Need is if it's for your class. Otherwise your only options are Greed and Pass. Greed is for if you want the item, Pass is for if you want to pass it up. Everyone in the party gets to choose an option. Need trumps greed, and greed trumps pass. If 2 people either pick need or greed, a random number will be rolled to determine who gets the item. In a nutshell, only one person in the party can get the item. If you're lucky you'll end up with items each run, sometimes you'll end up with nothing.