I have run into a weird bug where if I click on the loot popup to view an item in my bags, it opens the default bags, and then I am unable to close the bags.

I have tried everything including macro commands, but nothing seems to close it other then a UI reload.

Unfortunately I am unable to replicate this fully. I see that clicking loot does open default bag the loot is in however I am able to close the bags with the "x"/close button, the key bind default "b" obviously wont work if you have override default on.

Do you also experience this with other addons off?

Is this retail, wrath, classic?

My apologies, I was referring to retail.