hah will do this if I can even create my lobby

Hey there is a second method that worked for me ad my friend totally fine!

You just need to open up your Inventory, there you will find a small blue button over your money!
If you click on it you will open up the loot filter. You need to create a new loot filter profile,
because the default one often gets bugged!

Just chose the rarity that you would like to see for armor weapons etc.
I recommend blue till purple cause the blue stuff gives also a good amount of cash.
Then click apply and your good to go and you can pick up items again!!!!!!!

PS: Just to explain how the loot filter works and why this bug comes up.
Every rarity that isn´t in the filter cant be picked up anymore and the text is also hidden,
but you can still see the items on the ground.
And the default profile can bug and it just puts a rarity or more off....
Thats the reason for the confusion and why everyone things they can´t pick up loot.