Chance of zombies dropping iron items has been dramatically reduced, possibly because of the new "only-can-drop-if-wielding" chance, which didn't remove the drop chance making the drop a multiplication between these two chances making it almost impossible to get a drop (I killed over 3000 zombies from a spawner without any iron item drop, only carrots, potatoes and iron ignots which seem the keep a normal drop rate)
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I tried on normal difficulty in a zombie farm with these 3000 (now around 4000) with no result, while in 1.3.2 their drop rate was notoriously high, similar to their drop rate on carrots and potatoes in 1.4.2+
Duplicate of MC-1049.
Drops are affected by game difficulty. Try changing your game to hard and you should see a difference.