The new Loot CE setting makes it so items last longer before they get cleaned up. From what I've gathered this also applies to items that have not been touched and remain in their original spawn location.
This encourages players to lootcycle, as specifically in high value loot areas such as military bases, people are going to find the "useless" items to still be present upon returning, as they haven't been cleaned up.
With the new setting this will also result in high value loot areas being overflown with discarded "useless" items that were lootcycled in order for new loot to appear, and given the fact, that their lifetime appears to be 24h or more, areas will be clustered with loot.
What needs to happen is, that the lifetime value for untouched items needs to be reset to what it used to be.
The other major problem is the "swarm spawning" of loot which is a result of an item falling under it's minimal amount value, leading to it being "restocked" mostly or entirely into an area that currently has alot of open slots as it has just been looted (usually busy areas that are eligible for said loot).
To fix the swarm spawning, you need to set a limit for how many of one item a certain loot location, such as a military base is allowed to hold. So if there are alot of open loot slots not all of them will be filled with the same item that has just been restocked to it's nominal value. Pretty simple and straightforward logic.
Here is a video from today, showing the swarm spawning.