Borderlands 3 loot diapering in Cooperation mode

I have my borderlands 3 Co-op mode is set to Cooperation, yet it seems that loot is being shared. I have double and triple checked that group loot is supposed to be instanced to each player. But when I kill a boss with a group I see loot diapering to other players, such as guns and Eridium. Could I be misunderstand something basic? Once a again I have Cooperation, the icon with a chest and 3 little people above it, checked and not Coopetition chest, the little chest alone checked. I am on the PS4, I played all the Borderlands but this is the 1st time using Co-op mode.

What’s ‘diapering’?

Predictive for ‘disappearing’?

Loot diapering has to become a thing

Also this is for Pre-Sequel, not 3 friendo

Those darn millennials with their “loot diapering” and stuff! <grumble grumble>