Right now it seems that the center point of whatever item is lying on the ground must be within your hearthlings "bounds box" in order for it to be picked up. And sometimes items tend to get stuck under various things, including walls, trees, processing utilities etc.
Instead, allow us to pick items in a small radius around them. Sometimes the item visually is large enough to seem to be pickable, but it's center is actually inside some other collider, making it impossible or annoying to retrieve it.
The pickup radius shouldn't be too big, but enough to let us pick things up at a small distance as if we leaned to reach it.