On the current experimental patch 1.02, there seems to be a few problems with items and the vicinity menu. The best example I can give of this occurred recently. I was dropping some items for a friend, and he couldn’t see the items in his vicinity menu, because they were directly under my character. Sometimes, when I drop a few items, certain items seems to disappear, but I believe it is because they are hidden by other items on top of them.
It seems that items will only appear in the vicinity menu, if your character is looking directly at them. Whilst this almost realistic, I do wonder if it’s intentional? If it is, then fair enough, but it’s a bit of a pain, because sometimes objects obscure the view, and you have to be in an exact position to pick an object up. It can be very finicky. Not ideal in the heat of battle, when you waste 10 seconds trying to pick up an item,