I never used a baby bath, just bathed the baby in with one of us or in the sink.
Towels and flannels you don't need special baby ones, whatever you already have is usually fine.
Never used any lotion, don't even know what it's for.
Did use baby shampoo/body wash stuff just because it seemed milder than the normal kids or adult stuff. But you don't need it to begin with as should only wash them with water.
Grooming kit not needed, baby nail clippers or baby nail file useful.
Advice is not to have formula in "just in case" unless you don't have a 24h supermarket nearby. I would say the other feeding things you list are also worth having on a wait and see rather than an essentials list. If breastfeeding you'll want breast pads and a couple of nursing bras as well as clothing you can easily and comfortably access your boobs in. If formula feeding then obviously you'll need bottles, brush, steriliser and formula.
Muslins are essential to me but I know not everyone uses them. I just found it handy to have something specific for "leaky baby ick" to hand at all times!
Dummies not essential. Clothing you'll know the season your baby is due in so def don't need clothes for all temperatures... For newborns short sleeved vest+ long sleeve footed sleepsuit is the standard outfit and it's practical to keep them in that kind of thing until they are crawling. You might prefer little outfits in which case season might come into it. It's hard to predict clothing size to season in advance because babies grow at different rates and may be up to 3 sizes different from their actual age at any time. Once they're here you'll know if they are behind or ahead but it can change over time.
Don't need plastic nappy bags until they're on solids, or ever if you can transfer straight to outside bin. Do need a decent sized bag to transport all your changing, feeding paraphernalia, spare clothes and toys.
It's useful to have a safe clean place to "park" the baby at home. Whether that's a swing or blanket or one of those overpriced nest things.
Winter or autumn babies need a warm hat and jacket plus blankets or a pram suit for the pram.
Summer babies need a sun hat but you don't put sun cream on a newborn, so skip it the first year.
You'll want cellular blankets or sleeping bags or swaddles for sleeping.