One option I ended up using is turning my carrying capacity from 35 kg to infinite. I didn't exactly need infinite, just doubling the carrying capacity would have been okay. The standard carrying capacity, even when increased by buying or crafting a backpack, is just annoying, like in so many other games. Increasing carrying capacity was the only mod I used on Starfield, for example, because it had the same issue.

I assume the limit on carrying capacity is to provide some realism. Yeah, I can see how a person wouldn't be able to carry more than 35 kg of stuff with him all the time. But in Medieval Dynasty you are supposed to build a whole village. And the wood and stone needed to build a house weighs a lot more than 35 kg. It is enough work to have to log all those trees and gather all that wood and stone. It just gets annoying if your limited carrying capacity forces you to constantly go back and forth to transport those building materials.

In Medieval Dynasty there is an additional problem of carrying capacity due to the quests. Only when you accept a quest do you learn what exactly the NPC wants. If you already advanced your village a bit, very frequently the NPC will ask for something you have, like some leather. But because your carrying capacity is limited, you left your leather in a chest in your village. And now you need to walk for like 10 minutes real time back to your village, get the leather, and walk another 10 minutes to the quest NPC. The quests in Medieval Dynasty already require a lot of walking, and fast travel is too expensive to be practical in the first half of the game.

So I appreciate games which give me the option to remove or modify the limit to carrying capacity. A bit of inventory management can be fun, but if it gets too much, it just becomes a nuisance.