It's something bethesda missed out. Or a bug.
That's a bug. Can you still continue the quest line afterward? Or is everyone just standing around? When that happened to me I couldn't.
Yeah, likely a bug or something. Fortunately USKP fixes that, among countless other issues.
Here's another serious question: why isn't this thread in the spoiler section?
edit:
And it got moved.
I think its because he died while going Werewolf..
I mean, all our armor is unquiped in the transformation
Or the others took off his armor for first aid/medical help/trying to heal him. I really didn't think about it what with everyone being ticked off that I wasn't there to fight.