The way to make enemy monsters have equipment is to assign them a gender (male or female), and NOT monster. They also must not be recruitable, or they'll function as human. As it was said, I have tried to make monsters equip things legitimately, but the problem is with stupid checks all over the place in the code. "branch if unit is a monster" followed by "branch if unit has no item equipped in x slot" (why would the first check be necessary if the 2nd check is made).