Salem

I got a message saying my saved location was invalid and otherwise occupied and would i like to go back to my homestead without losing inventory... but i did lose my inventory.

not a bug. this happens if someone else places an object over where you logged out or if you crashed whilst carrying something.

the loss of inventory when it told me i would not lose it is the bug.

shalimar wrote:the loss of inventory when it told me i would not lose it is the bug.

you cannot log back in without the loss of your inventory. That is what it tells you.

This is a known problem and reported previously. There are specific situations that you can't log back in without losing everything and situations where you can log back in after getting disconnected and keep inventory. I seem to recall a case or two of these being reported where the message wasn't correct. Nobody can tell you exactly what should have happened unless you provide exact details.