I don’t know if this is a Bug.
My server has following settings:
Pvp on (24/7), building damage off, Container ignore ownership off, Inventory stay after death, no one can loot corpses.
I found out i can open the Inventory of sleeping characters and take his stuff (or giving).
Is this intended?
As long as pvp is on, you can loot sleeping people, yes. What you can do is remove the bodies of the logged out players.
Played on a server like that once dressed a clan mate in magneta pink Bejeweled out fit he was beautiful LoL.
How do i remove them without killing?
Yeah, i found 2 inside my Base. 1 is pink and 1 is green now 
It is a server setting: LoggedOutCharactersRemainInTheWorld = True/False
Ok, but i let this setting on true. People should logout in safe areas, not outside in wilderness.
Then you can keep dying their armor if they don’t.
I will do that 