As shown in the video below at some point the item pickup with the controller button is bugged out after a while and it is only possible to pickup items on a higher elevation (I know, weird).
https://imgur.com/a/edugs8V
I could not figure out why this happens but:
When disabling the current lootfilter (within the lootfilter menu) and enabling it works again.
I am encountering this every time when having longer gaming sessions. The last time it occured after 15 minutes already.
Cheers