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Therefore, every player character only gets to keep one newly acquired item or weapon on the character sheet. This does not apply to equipment that you started the game with, mementos and everyday items – you always get to keep these.

Does this mean each PC can keep one new piece of equipment per Mystery or one extra piece of equipment (betond starting equipment) in toto?

I interpret it that you can keep one extra item beyond your personal items, not one per mystery. If one extra item per mystery would be allowed, then a group quickly would have a lot of items and certain item functions would become more or less useless. But that is mine opinion (and how I will run it).

I rule it like Fenhorn: 1 piece of equipment in toto, that’s still plenty.

Same here.

While I agree with the mechanic, I'm allowing a bit more.

As in, if it appears in the archetype's equipment list, buying it adds it permanently.
Otherwise, if it is non-expendable, it can later be picked at no availability cost to the character, but only one item per mystery.

I'd allow a talent for an additional signature item.

Therefore, every player character only gets to keep one newly acquired item or weapon on the character sheet. This does not apply to equipment that you started the game with, mementos and everyday items – you always get to keep these.

Does this mean each PC can keep one new piece of equipment per Mystery or one extra piece of equipment (betond starting equipment) in toto?

I use it like this:

Mystery 1 and my priest bought a lantern to use, when we are back he kept that item.

Mystery 2 and my priest still has that lantern but got a pistol for this monster, now when we get back he has to choose, lantern or pistol. Keeps pistol.

Mystery 3 and now he has a pistol but gets medical aid and binoculars, now he has to choose between those three and keeps binoculars.

And so on, until they get upgrades for Gyllencreutz

So they effectively use up all the items they procured during the preparation phase, including weapons?

Not every item every time, in my group.
They spent some time carrying around a bear trap to no use at all. They finally decided to get rid of it.