It works like this:
DL_LootSpawnComponent is added to prefab for "destructible multiphase props" which almost every prop in the game inherits from:
https://github.com/wyqydsyq/DynamicLoot/blob/main/Prefabs/Props/Core/DestructibleMultiPhase_Props_Base.et
In the system's OnUpdate it iterates through all registered DL_LootSpawnComponent instances, checking their owner entity's resource name against the following whitelist/blacklist
https://github.com/wyqydsyq/DynamicLoot/blob/main/scripts/Game/Systems/DL_LootSystem.c#L31
Prefabs that match the whitelist + are not blacklisted have a DL_LootContainerTrigger entity created as a child which then spawns the actual loot container when a player gets close by, loot items are generated by the server upon player requesting to open a loot container
I'll be making the whitelist+blacklist tweakable from the system config a future update, in the meantime if you want to change them feel free to just override the arrays directly
Loot items themselves are read from the EntityCatalogs of every faction in the world's FactionManager, so any vanilla or modded gear properly registered to them and accessible via Arsenal will be available as loot automatically