Looked into this a bit the other night for Eoghain, I believe this to be a phasing (704) issue with a logical error in line 982.
982: right_hand = GameObj.left_hand.id == loot.id

Should this not read...
982: right_hand = GameObj.left_hand.id != loot.id
(So that right_hand is false when the item we are looting is in our left hand)