There was a paladin I was questing with and noticed that my server message bar said that he was 'discretely' taking an item. I thought that was only available for rogues?

I asked him in an OOC tell if he was a rogue and he said he was a full paladin, which would mean he doesn't have that option available to him.

Only happened once, would need to test it again more thoroughly.

It's not only available to rogues.

Incidentally, "discreet" means "subtle" or "cautious" (as you would be when trying to pick up an item without anybody else noticing that you're doing so), whereas "discrete" means "constituting a separate entity or part". The word being used here is "discreet", not "discrete".