When using default kits to create a monster (an Ogre), I noticed that the Hide armor was going to the area Equipped rather than being equipped to the Body slot that armor is normally equipped to. While the LOCATION value in the starting kit does say Equipped, I read in the docs:
"LOCATION is used in GEAR lines to specify the location the item will be equipped to. If an item is of a TYPE with a specific slot then setting it to Equipped will equip it there. Only weapons need more specific settings."
( http://www.pcgen-test.org/autobuilds/pcgen-docs/listfilepages/datafilestagpages/datafilesstartingkits.html#LOCATION )
An example shows leather armor using "Equipped" to be placed in the "Armor" slot.
I also tried it with a Merrow and the Ogre Barbarian, noticing that the barbarian's +1 Ring of Protection also goes to Equipped instead of Fingers.
Resolved as part of other work.