The enchantment "telekinesis" which sucks the mined items directly into the player's inventory does stop the pickup of items as that items never are dropped into the world.

(solved by uninstalling telekinesis atm)

Time for another coremod

hmm, that won't work, there's nothing I can do on my end.

belay that, there might be something

fixed in 3.4, items are now intercepted from any source trying to add to player inventory.

Just wanted to let you know about this. This is not a bug in my eyes. But some users might say "your mod no sucks item, dah!". And you now know possibly why.

Fix confirmed. Very good work. Telekinesis + Dank = Lots of fun. No more worries if that diamonds will drop into the lava pool or not.