Right, so my suggestion is this:
NPC’s default equipment is their ‘minimum acceptable’ value for good equipment.
If the player gives an NPC an item, it’s flagged that it originated from the player and can be replaced so long as it’s not worse than the equipment they started with.
Their minimum expectations for gear will slowly climb until it’s slightly below the gear they’ve been given, in which case they won’t accept anything much worse than what they expect or will at the cost of morale, will be more likely to flee and disband, and will like and trust you less.
We would need a inventory for this equipment UI that shows what the NPC considers ‘good’ gear.
How good equipment is to an NPC should really be influenced by skills and of course martial arts, a highly skilled rifleman is going to prefer an average rifle to a decent pistol or SMG simply because they’re much better at using it so it’s going to end up more effective, and the same with melee.
Now that we have the player faction bases and as far as I am aware, at least from code I’ve looked at, NPCs can actually train skills right?
So the player /could/ still have some impact on this, but it’s less power than they would have had before.
We need dialogue options to specify what kind of run we’re going on to adjust priority.
‘We need to travel light’: prioritize armour with lower encumberance
‘We need good protection at the moment’: prioritize armour that protects better.
‘The environment is more dangerous than monsters where we’re going’: prioritize high environmental protection, acid protection.
Obviously different wordings that could be used, but the player specifying their intent should adjust what an NPC thinks is ‘good’
If ‘we need to be quiet’, they’re gonna prefer a crossbow over a rifle, or a pistol crossbow over a pistol, or a bow if they have skill in archery, or it’s just a good bow.
Silenced weapons too of course, perhaps allow them to mod weapons they’re wielding with silencers if they have one in their inventory, they’d naturally have a preference towards silenced guns of their skill expertise.
This may involve compiling a list of which items are the ‘best’ in each situation.
Perhaps there should be an overall ‘equipment morale’ value per NPC that basically tells you how happy they are with their current gear, and if overall morale is too low they can disband and sprint away when shit hits the fan.