After losing a battle and becoming prisoner and finally being released. There was a bug where my movement was dropped to 1 because there were "footmen on horses" even though i had no men in my party and nothing in my inventory other than horses. Also it seems like having horses does not add to the inventory capacity even though i have multiple horses and stays at 20.
edit: i restarted game and the issue resolved itself.
edit: i restarted game and the issue resolved itself.