"Mastering Diablo 4: Sacred Items, Unique Bonuses, UI, Gems, and Shared Loot Explained"

Sacred items are upgraded versions of items that drop in World Tier 3 activities, while Ancestral items drop in World Tier 4 and have even higher item level upgrades. Both types of items have exclusive affixes and can be found in various activities such as dungeons and events. Players should aim to replace their gear with Sacred and Ancestral items to prepare for the level 70 Capstone Dungeon.