A games master could work but it was mainly designed as a solo game which requires a level of creativity, creative writing and willingness to let the story unfold instead of being a heavily mechanically driven game.
For 1 I would say that is a failure as the pool is heavily skewed to a massive failure. And for 2 there is no limit but you should be thinking narratively about what your character can carry. without a backpack a character would not be able to carry armfuls of items else they wouldn't be able move around or interact without dropping items and picking them up.
But at the end of the day it is a narrative game it is down to you how you want to do it. When I play im more focused on creating an interesting story instead of being beholden to rigid mechanical structure.