"NPCs": {
"Enabled": true,
"Scientist Weapon Accuracy (0 - 100)": 75.0,
"Spawn Murderers": false,
"Spawn Scientists Only": true,
"Spawn Murderers And Scientists": false,
"Amount To Spawn": 6,
"Minimum Amount To Spawn": 3,
"Despawn Inventory On Death": true,
"Spawn Random Amount": true,
"Health For Murderers (100 min, 5000 max)": 150.0,
"Health For Scientists (100 min, 5000 max)": 150.0,
"Murderer Items": [
"metal.facemask",
"metal.plate.torso",
"pants",
"tactical.gloves",
"boots.frog",
"tshirt",
"machete"
],
"Scientist Items": [
"hazmatsuit_scientist_peacekeeper",
"rifle.ak"
],

Does that indicate what they have equipped or what is in their main inventory that would be lootable on death of NPC?   If this is referring to what they are wearing, does the kit (if one is made), override this?

This is what they're wearing. Yes, kit overrides this.