I tried searching for the answer to this to no avail. There are 2 "facts" I'm aware of...
1) Npcs spawn with their loot table set (99% of the time)
2) Humanoid npcs will "sometimes" equip/display items on their loot table (ie. orc with orc pick)
1) Npcs spawn with their loot table set (99% of the time)
2) Humanoid npcs will "sometimes" equip/display items on their loot table (ie. orc with orc pick)