Your problem is not in the items themselfs, its in the actions they make when you USE them.
Since you didn't put a X on the "Stats - Use Automatically When Acquired", it uses it the moment you acquire it.
Your actions at usage are the cause, and its also pretty obvious, since you are trying to move items from the inventory of a REMOVED unit.
You should move all items to some place the players can't see, replace the hero, and then move them back.