Does anyone know what specifically causes the player to get arrested? It appears to happen at or after 4PM on Day 2. I played through multiple times, only taking exactly what I needed to complete the game and dropping items once they were used. I could not stop getting arrested (and therefore could not complete the game).

Did this happen to anyone else as well?

The message it gives the player is that stolen items are in the room at the pub, but there were definitely no stolen items in my room at the pub, so something else is going on here.