Since the release of 1.17, Holding (X) no longer removes items from containers within a players vicinity.
For example: (Before 1.17) If I wanted to empty a crate/barrel/backpack/etc... that was placed/dropped on the ground, I would just hold (X) on each item in the container and they would drop to the vicinity. (After 1.17) This is no longer possible. The only way to move items from the container to the vicinity is to press (A) to bring the item to your hands, then hold (X) to drop out of your hands (OR) Hold (A) on the item, click the right or left triggers to navigate to the vicinity, then let go of the (A) button.
The example above also happens when cooking items in a house fireplace. You can no longer hold (X) to drop it from the cooking slot to the ground.
This bug makes it very difficult to manage loot/inventory especially when you need to things like tents and such.
Thank you and let me know if you need any additional info!