This is a bug that happens in a few missions, I'd love to be able to change it but I believe the saddle is applied by the mission script and there's no way to edit the script or overwrite the saddle with the player's as far as I'm aware.
This mod will be compatible with any other mod that does NOT edit "MSP_MudTown5_Males_01.ymt" specifically. I'm using near 80 of the more popular mods, of which NONE contain this specific .ymt file.
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There is also another kind of bug in this mission, for some reason the saddle on horse always changes to a different one, is this supposed to happen?
Hope you can look into it