I found a blue Taloon back in a garage shed which I was unable to pick up and equip. I tried taking into hands, dragging from vicinity to hands, body, equipment window but nothing worked. I assumed it was bugged so I left it there.
After a few minutes I found enough materials to craft a Improvised Courier bag which I crafted, however I was unable to equip said Improvised Courier Bag. I assumed that was also bugged so I decide to grab sticks from a bush so I could upgrade it to a Improvised Back and try equipping that. Using an improvised knife, I went to a bush to cut for sticks but no sticks dropped on the ground or went into my inventory. I went to a second and third bush, same result, no sticks anywhere even though I can clearly see the bushes "flatten". I figured my character was just bugged so I decided to rejoin the server.
After rejoining the same server, I checked my inventory and noticed I am using the blue Taloon backpack I found several minutes earlier along with the missing sticks I cut from the bushes (3 stacks of 3 sticks each). I went back to the same garage shed I found that backpack and confirmed it was missing on the table. Everything seemed to work normally after that. (I ditched the Taloon and crafted then wore my Improvised Back.)