the more luck you get the higher chance you have to get rarer items. so if you have enough luck legendaries and other rarer items/encounters could become quite common!
Mathew gives you items in a fresh run if you press m on the loading screen it should take you to him (not exclusive to pacifist). I think wands still count as normal damage.
first real run with a bow , got to two levels after the first boss on endless. shield has haste. Definitely the most organized i've ever had my back pack 11/10 would try again