Injustice 2 update 1.11 just hit PlayStation 4 and Xbox One, and it fixes the issue with players losing their in-game gear. The official Injustice 2 Twitter announced the patch:
UPDATE – a patch is now available for both PlayStation and Xbox users to address the deletion of Gear. Thank you for your patience!
— Injustice2 (@InjusticeGame) September 29, 2017

The past two updates have been to rectify issues from update 1.09, which brought a slew of balance changes with it:

General Gameplay fixes

General stability and Online stability improvements
Move list corrections and improvements to AI logic
Increased the Base Stats on Legendary items
Legendary Multiverse Portals are now available for Black Adam, Brainiac, Catwoman, Deadshot, Flash, Scarecrow, and Supergirl Reduced the ‘minutes played with’ requirements in Legendary Multiverse Events from 3000 & 7000 to 1000 & 3000 respectively
The ‘sacrifice gear’ requirements in Legendary Multiverse Events now uses Rare or Epic items
Fixes and Tweaks to some Character Tutorials
When you are hit during the recovery frames of a move or an attack the gameplay message will display ‘Punish’ instead of ‘Counter’ where applicable
Added dynamic shadows to some character items which were missing them
Adjusted the hit region of bomb type Environment Interactions
Fixed rare bug that could some attacks to have abnormal recovery when hitting Flash while he has Speed Zone charac...