This is a documented bug where NPCs who are dismissed respawn their starting gear over and over until they can no longer be given anything to carry.

Being that I use the xbox for Skyrim I obviously don't have access to console commands to delete their gear. I have tried everything in game that can be tried to get rid of their starting gear with no success. This includes things like reinstalling, starting totally new games, using Misdirection/Perfect Touch, all kinds of paralyze and so on. I also understand that you can have them pick things up themselves, but that doesn't always work out well for various reasons either.

To me this seems like a major bug, so my question is will this be addressed in an upcoming patch? As it stands now this bug ruins many of the npcs, especially if you have a favorite few.