I haven't been arrested yet because I always pay my bounty or bribe the guards but I'm wondering, does Prison affect any of your skills and do you lose your items when they release you?

Also another thing I've been wondering is, does sleep really help with anything? or is it just there for no reason

Anyone?

I think sleep this time around just gives you a 'Well Rested' perk similar to Fallout. The older games, it used to be necessary to level up. I think if you're a werewolf, it's literally worthless. Can anyone else confirm?

Jail resets skill progression to next level, but it wont lower your actual skill.

Resting grants an XP bonus, which werewolves dont recieve, resting is truly useless to a wolf.