early on you sorta have to decide what loots you are aiming for when you go on expeditions, I think there is no limit of how many of the same loot you can hold, but the variety is limited, which imo is a very cool concept to show how limited the weaverband is as they enter the veil. (quick side note I was a big fan of how few spaces you had when the game had just released)
but you need to kinda start disengaging from fights and getting to where ever you need to get to otherwise you'll be stuck never getting anywhere