Does it lower the encumbrance limit so far that the test character becomes encumbered, and starts taking Max Dex limits from the encumbrance (if you're testing on a PC, the 3 lbs of coins that's the default starting cash would be medium encumbrance to a diminutive creature with an effective strength of 2). Medium encumbrance's max dex of +3 may be limiting the effectveness of the DEX bonus you're adding.
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