Knights of Tezoth

Out of combat. If, for example, they go to another town, how many "passengers" can they take?

As many as would make sense. For a character with the physique of Jabba the Hutt, it will be harder than for others. There is more room on a hydra than on a pegasus. And so on and so forth.

So they are noticeable to own surroundings? Can someone "break" it?

Yes. If someone wants it badly enough, they can.

Does it restore destroyed items?

That is exactly what it's intended for, but the sharpening is not restored.

What about unarmed combat? Is there none?

There is none.