A recent change made cloak pins required to cloak conceal.
I like the idea of the items as decoration, but this change doesn't make much sense. You can still cloak and hide your equipment/inventory, so why would it prevent you from pulling your hood up?
Cloak pins also don't make much sense for other hooded garments, e.g. Vandagan greatcoats and Farin ponchos. Cloaks themselves wouldn't necessarily require such either, depending on the design.
