I recently switched hosting companies and had no issues with DayZ 1.07. On my server with the new hosting company 1.08 was released, so I installed a fresh 1.08 server. Turns out the CLE is not working correctly. After about a week of testing and back and forth with the hosting companies' support stuff we've determined the following, which they were able to replicate on their own servers as well:
The "lifetime" value for items in the types.xml file is being ignored by the CLE. This is not very apparently on populated servers, but on new servers which don't have an established population yet it is very apparent. What this means is that despite reasonable values such as 180 minutes for an item's lifetime, CLE is not triggered and the item remains in game indefinitely so long as it is not picked up. Server restarts did nothing to address this.
Previously, in 1.07 if I would log out somewhere and return after X amount of time all the loot would have changed so long as the specific lifetime values were exceeded. This has no meaning in 1.08 as items remain on the ground indefinitely until someone picks them up. May not be much of a concern for fully populated servers, but for new servers or people who play occasionally with friends this is almost gamebreaking. Noone wants to manually loot cycle.