When in Freecam mode without 'FreecameraPlayerMovement' the player is no longer able to place blocks or interact with objects like doors. This worked fine previously and I wanted to know if this was an intentional change. If it was please consider adding an option independent to this which allows for just interacting/ placing blocks and not movement. This would be helpful for overseeing machines that require player interaction.

It is intentional that you can't interact with anything in the free camera mode by default. There is actually already a separate freeCameraPlayerInputs option for just attacking and using items in the 1.12.2 version, but apparently it was added a bit later than the other free camera changes, so I missed that commit when I was cherry-picking the other free camera changes from 1.12.2 to 1.16.1 a little while ago. So in other words yes a separate option for just attacks/uses is intended and will come at some point, I guess I should cherry-pick that soon as the proper full update from 1.12.2 is still probably quite some time away.