I have found fishing rod with the real/not crafted hook. Got worm using starter knife. Pressed X on the worm and focussed bite slot in the fishing rod, so worm was attached. Then I started fishing by pressing and holding L2. Then when I think fish started biting - I have released L2.
After that: all possible interactions like fishing, opening doors, crafting rags, opening cans, gathering sticks - disappeared.
I'm on PS5
Video recording: https://drive.google.com/file/d/1T1JS7ZXyJFqy2O50ZhJSUTbW8QwYP7Hb/view?usp=sharing