I am positively sure it's a game glitch (wishful thinking). Whenever I assign the two favorite buttons (Left & Right), during switching in battles, many times the item I wanted does not appear. Certain items work but many don't work. When I switch I end up holding nothing on an empty hand. So pissed!

Anyone having this problem would like to share?

Wait... You use the D-pad to select your weapons/spells from the favorites' menu?

I just use L1 and R1.

You can assign the left (1.) and right (2.)dpad keys to two of your favorite items/spells, and they will come up automatically when you press them instead of going into your favorites and choosing them.

And it has worked for me so far UNLESS I change something after I have chosen it. For example, I have #2 as my nightinggale blade, and my shield of YsGammor in my left hand. But if I change anything, then the next time I hit the #2 pad, it will be messed up. I hope that makes sense.

No, I keep it simple.
For instance -

I dual wield a dagger in left and sword in right. I have Fury saved to my left. I have a poison saved to my right. When I need to change back to my dagger/sword I just go into the fav menu.

I have noticed those hotkey buttons can be a bit finicky, so I too keep it simple. Shield is 1. Healing spell is 2. If I hit the 2 button twice I end up with a healing spell in each hand, so then I have to hit the 1 button to get my shield back. I go into the favorites menu to equip any other spell or my sword.

This happens if you hotkey 2 of the same item, like 2 of the same weapon for dual wield it will equip one and remove the other from the favorites menu.

Hmmm...no never had that before, and i use PS3