Okay, beginner here. I keep on finding all sorts of items that I could use in combat. But I don't know if I have to use them with the square button, or on my slingshot, or equip them any other way. How does one know the difference and how does one use the different items?
It's all so convoluted at the start. I hope the game will click soon.
I recommend you take a bunch of items u are curious about into the training area to get a feel for them. Using them in there won't deplete your inventory at all. You can equip or use items using the radial menus (open with L1 and select with right stick) or the item bar, which you cycle through on the dpad and equip with square. You can customize your radial menus from the pause screen and you can customize the order of items on the item bar by opening your pouch and pressing triangle.
Items like tranq bombs and traps will be directly used when you press square, whereas slinger items will be equipped to the slinger when you press square, and can be aimed with L2 and fired with R2, when your weapon is sheathed. Note: "pressing square" here refers to equipping from the item bar, for equipping from the radial menu, the items are equipped/used by holding L1 and making the selection with the right stick.
I have my main item loadouts organized into three radial menus, one from prep, one for battle, and one for field excursions, which I swap through on the fly. I rely on the item bar for frequently used items like mantles, potions, and antidotes.