Version: steam mac 379591
$SUBJECT - it's apparently only a graphics glitch - having tested with a damage indicator mod, I'm still dealing the proper werewilba damage, and the item does not lose durability if attacking/working - in fact, I don't even need to have the actual item in my inventory.
Is also triggered by horn (tested), and I imagine dripple pipes. If anyones curios, torch will not provide light this way If there is no last held item (after reload), Werewilba will still have her hand stretched out as if holding something, but there's nothing.
As wilba, hold an equippable item, unequip it. Transform into werewilba, and play some item like a panflute. Observe as the previously equipped item is now shown in the characters hand, despite not being equipped.