OK, cleared out most of the Obelisk Caverns. Have solve the Obelisk tiles and gotten the Orb from the Obelisk. But NONE of the magic of any of my items is restored. All the spell scrolls are a blank piece of paper but no description shows. When looking at any item, swords, shields, amulets, anything there just a generic description but no mention of magical bonuses. and they have none. Even Heal potions do not work, can't even slot them. Game just responds "you can't use that". I can't even use the Relic. Any one else have this issue or have a fix for it?

This is a well-known bug. I hope that you have an earlier save, because at this moment there's nothing you can do. Some people report that skipping the fight with Bebilith (the giant spider) prevents this bug from occuring. In this case you have to get to the obelisk through the closed doors, but to do this you need to have a high level of lore or spellcraft. If it's not the case, your best move will be to skip this level of dungeon entirely. You shouldn't have too much trouble defeating the Beholder Tyrant.

Fortunately I did make some named saves, so I did some experimenting. Tried taking out the Tyrant before going down the hole and succeeded. So I really don't need the Orb any way unless it is used later on in the "Big Battle" . One thing I noticed is that when you jump down the hole and then climb back you get greeted by 5 Beholders. At least the first time you come back up. Even if you take out the Tyrant fist. Kept running back to climb out to see when my stuff got wiped out. Seemed to happen when I solved the Obelisk puzzle. Didn't even take the Orb. Also I noticed that my henchmen's items got restored, it was just everything I carried that gets wiped. So yeah, looks like I'll just have to skip solving the Obelisk and move on.

Unfortunately, this bug is still active :(
According to Steam's forum, there was a fix made some years ago in a 'developer build' Guess I'm going back to playing the Diamond or Complete edition.

Actually it's possible that the problem was present also in the previous editions of the game. So don't get your hopes too high. :( The Enhanced Edition has currently so many advantages that it's pointless to play Diamond or Complete editions IMHO (unless you want the original experience as a retro gamer).