So, I've been working on Bayjin Shallows for the past two days now trying to get either a Light Sword or Excalibur, but neither has shown up. The pirate ghosts (when they drop anything at all) have been dropping Vaporizers, and the best item I've seen in Nessie's chest has been the Divinemail armor.

Last game I got Excalibur on my first try, no Light Sword but I'm starting to think that some rolls may be dependent upon the level of your party.. Has anyone else experienced this?

I think it's random. Perhaps based on your party members - if it is something yer party member can have, it becomes more difficult on the random roll.

The only thing I have gotten is the Cane of Corpus. And I have no Faerie Ninja.

However, wife got the cane (she has a ninja), she also got excalibur (I did not).

So it's luck of the draw, really.