Yes, that's a bug that we're fixing in v1.1. You can retrieve your stuff before going to Svartalfheim, but you can still complete the game even without it (in which case, you just need to make sure you don't stuff up too many quests).
V1.1 probably coming end Jan or early Feb, depending on how quickly we can get this build tested to make sure no other bugs got introduced.
Ok, cool. In that case, I'll just wait for the fixed version.
Also some more bugs I've spotted off the top of my head:
o In Svartalfheim smithy - teleporting from the second floor (which is also the ceiling) to the first one using the Blink spell results in game crash.
o Sometimes the game freezes if you ask Lithrasir to get you a drink while she is busy preparing herbs. I wasn't able to replicated this one, though.
o There was a graphical glitch (wrong animation, as far as I remember) when I died because of overexertion while trying to climb into Munarvagir inn window.