If you try to move any item from Vicinity window (ground) to Hands icon with item becomes red and this item remains in Vicinity. This problem leads to another 2 issues:

1. It is impossible to use items directly from Vicinity window (drink/eat/etc):

You need to have an item in hands before you use it and if you are not able to take this item directly to hands, you can't use it from Vicinity directly.

2. If you try to use any item directly from Vicinity window (drink something for instance), then move this item to Inventory and then move it to Hands window, you will consume item automatically.

It seems like chain of actions starts when you try to use an item directly from "ground", and this chain is blocked, but if you "force" this item to be in Hands window, chain of actions will complete automatically...