I had equipped Lady Scully, NPC, with some basic items and then I noticed she couldn't see all the cloaks in the shop. When I had another unit buy it for her and tried to trade it to her I noticed that her image had a cloak on already, but there was not one in her inventory. I tried to find the cloak I had just traded her and it was not in the equip screen, it was of course there when I traded it back to the unit that had boughten it in the first place. Then, when I tried other cloaks and armor, none of them would equip after it had been taken off once.

So basically she can wear it once. After that you can not put it back on her. It still makes the sound effects and will highlight, but will not show up on her image and is no longer highlighted when you exit out of the screen and look again.

Here is the save file:

http://www.mediafire.com/?6d3c44kfl16lc35