Steam/PC - Item Pickup Hotkey doesn't work?

Summary: Difficult to click on ground items to pick up when using volatile dead wand.

Explanation:
Have been playing fine, found a really nice volatile dead wand with good stats, I don't really use it, just have it equipped for the 60% spell amplification and I noticed that when I try to pickup items that drop on the ground, I will cast the spell volatile dead to turn the corpse into a fireball instead of picking up the item on the ground.

I remembered there was a hotkey bind for 'item pickup' so I went and bound it to a key and unfortunately it does not work for me unfortunately. This is extremely frustrating as I have to spend extra time looting bc I have to clear the dead corpses before I can pickup the item. In some scenarios, this can mean dying before I can get the valuable loot due to a not being able to loot properly.

I imagined the item pickup hotkey would be a bindable separate button that you click as you hover over the item, to avoid this quality of life issue.

I think this is a minor change that will vastly improve looting for volatile dead wand users.

Video of it in action. I am showcasing how it acts when you click normally on it, the hotkey simply does not work so nothing to show there.

Notice how I cast 'volatile dead' before I can loot.

Video clip: https://imgur.com/SliNNmN

Same for me.
I would love to have a dedicated pick up key for the same issue, except it's profane ritual.

I'm having the same issue. I enabled the 'key pickup' option in options > game, tried both the bound key (ctrl+Z) and the highlight key and neither works whether I'm mousing over the item or not. But I was watching a friend play with a controller and it works for him, so I'm not sure what's up with this. Would love to see it fixed, as much as I love ARPGs the thing I dislike most is having to click on items to pick them up.