Yes, definitely Jervon is right. My previous quote is incorrect, it is "game round", not "game turn". So only one hunter can use Resolve SoE (per round). It makes a lot of sence to be that way.
Regarding the other question, I think it matches the spirt of the game that the Hunters will always be able to resupply items if they are in large city, if there was no encounter. The official rules skip a lot of details and I think that this was the idea, it is just not written. Else they would have written "Be careful, once you run out of cards in the item deck, you cannot resupply items anymore" or at least "You can draw one event card and one item card (if there are stil any cards in the item deck).
Nowhere in the rules is mentioned that you can run out of items (nor the opposite), but item deck is symbolic structure and we always reshuffle it, items cannot seize to exist in cities, nor we consider run-out-of-items as intended late game penalty for the hunters. It will cause the hunters to think a bit more whether they always draw item and bring somemore strategy for that action and more of a value to breaking items (Dracula's Strenght card), especially late game. It will be terrible to break hunter's item at that point, it will be better than a kill (except the 2 points) - the hunter becomes useless .
So we reshuffle. We would reshuffle event deck as well, but I think that it has never run out.
Is it a bad rule not to reshuffle? No, not at all - more strategy for the hunters (and dracula), some advantage to Dracula which is also a good think, considering that he wins only about 40% of the games.
P.S. Have also in mind that there are three "Heavenly Host" pieces and only two cards which can lead to putting them. Of course, there are two "Secret Weapon" event cards, that give you the possibility to get two "Heavenly host" item cards from the discard pile. I don't know if that information leads to any conclusions.
Here are some more thoughts on that topic. It woud be great if we get official opinion on this.