When a monster drops an engram, only you see it. Your friends and randoms don't.
I don't have sources for this but, I think the engram item is decided when you decrypt it. So if you pick up an engram and store it in your vault until your Cryptarch level is much higher, you'll get a better item when you decrypt it.
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Thanks for the feedback. Have you ever shown up late to a fight and found an Engram just lying there? Seems like I had that happen a few times in Explore mode. Basically the battle was over, I show up, see other Guardians running around picking up stuff, I see a green Engram and pick up "their" loot.
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I don't remember any loot dropping for me unless I at least did some damage to the enemy. But many times an engram would drop but none of my friends could see it on the ground where I was pointing to and vice versa.
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Yeah. I may have just gotten a few shots off at the end.