An example, if I kill a zombie pigman with armor they drop full armor.
Steps to reproduce
Make sure your map is in creative mode. (This also affects the survival game play.)
Make sure your game difficulty is on the highest setting.
Spawn a zombie until one is wearing armor.
Give yourself a sword.
Switch to survival mode.
Kill the zombie that's wearing armor.
You will get all the armor the zombie was wearing. Repeat these steps and you will get even more sets of armor.
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Still there on build 13 of 0.12.1.
Do you mean that mobs always drop their armour? If so then I will vote for this bug, if not I'll write a new one. The armour dropping 100% of the time is overpowered.
Also:
This goes for all armour wearing mobs, and the armour that gets dropped is nearly always at full durability.
Win 10 PC edition 0.12.1

Comfirm on iPad 4, iPhone 5s, Windows 10

Still present in 0.12.2. I was attacked by a skeleton with full gold armor. When i killed it, it dropped all its armor. Tested on
Samsung Galaxy Note 2 Gt-N7100 and Windows 10 edition.

Confirmed Windows 10 0.12.0 and 0.12.1. Added a picture of how much I actually have.
This issue is currently being fixed.

Bug still present in 0.12.3.

Still present in 0.13.0 build 1.

Still happening on 0.13.0, using iPod Touch 5 Generation.
This issue was submitted for testing and fix.

This bug still affects version 0.13.1.
The bug has gotten worst, as now players can't see the armor on zombies, and only a bit on skeletons.

This bug is still present in build 1 of 0.14.0.

Bug present in 0.13.2

Confirmed for version 0.14.0 build 5
Device Samsung Galaxy Note3 Android 5.0

You would think would be good, but it is just plain annoying. So... much... armor... (I did not spell that wrong. The grammar varies between countries.) This bug is on my Kindle Fire and my iPad.

This is still present on 0.14.0.

Present on my device which is an Ipod touch 5th generation. Minecraft pe version 0.14.0

This still affects MCW10 version 0.14.1.
Device: PC with Win 10 Pro

Present on my iPhone 6S, running MCPE 0.14.3. I'd like to add two points to the discussion:
1) The importance of fixing this bug to Survival gameplay cannot be understated. A skilled Minecraft player with a set of stone tools can, after just the first night of a Survival world, easily acquire a half dozen full sets of gold and leather armor, much of it pretty well enchanted. There's no challenge in that. I want an armor drop from a mob to be an event, something exciting, something I'm proud to have, especially after just a few in-game days. But because armor drops are so common, almost none of it is valuable in any way. It's quite sad.
2) MCPE currently treats equipped armor on mobs as player-created armor that spawned with full durability. This means that if you kill an armored mob with potions, for example, the dropped armor will be at full durability. If you kill that same mob with a sword instead, their armor will take damage, resulting in a bunch of barely-damaged armor as seen in the picture posted above. But according to the Wiki, armor drops should have random durability, not full. I hope that this issue will be fixed alongside the major bug discussed here.

same here. i hope it gets fixed in the next update i have this bug on win10 as well not sure though on my ipod 4th gen mcpe though.

Confirmed for 0.15.0 on Windows 10 Edition.
This issue was reported and under fix for quite a while. It is more complex than initially reported.
Hopefully we will see a fix in the near future, please do not take this as a promise that this bug will be fixed in the next update.

Confirmed for 0.15.6

Fixed in version 0.16.0 build 1

Reopen it's still in 0.15.9

@unknown, 0.15.x does not contain bug fixes in 0.16.0 beta so it needs not to be reopened.
Confirmed in Build 9