Selina Scott and Jeff Banks were right all along: dress wrong and you're nothing. This is the lesson of Pillars of Eternity, a howler of a newly-disclosed bug in which will permanently strip your characters of buffs if you happen to use the inventory a certain way.
Obsidian are on the case as we speak, hoping to come up with a patch which will restore lost buffs as well as nuking the error in question. The 'orrible situation occurs if you equip an inventory item by double-clicking rather than dragging over it to the relevant slot on your character's paper doll.
Do this and the character in question will lose all permanent, passive and racial buffs forever and ever and ever, until you reload a savegame from before it happens. Trouble is, if you did this you probably didn't know until very recently that there was a potential consequence to it, so your save games will likely be as old as I felt when I watched a Stampy Cat video.
Different folks have reported different results from this bug, including stats not being affected on the character page but apparently still seeming buffed in practice, while some have found that removing an affected party member then re-adding them to the group will cure this clothes disease. So it's big, but it's mostly circumnavigable, and most importantly it's going away soon.
Wading into a forum thread of mild-to-high anxiety, Obsidian disclose that "We do have a fix for this, and I'm trying to make it retroactive, so it will fix any save games that have this problem," so hopefully this will be a non-issue within a matter of days. In the meantime, don't double-click. Double-click and you're dead. Or at least a tiny bit less strong if you're a dwarf, for instance.
By some sort of miracle, it appears I haven't double-clicked anything as yet, so my team is safe. Then again I've barely played any Pillars because finding opportunity to play a 4000 hour RPG in your spare time alone turns out to be impossible in your mid-30s.