It is sometimes very difficult to select which item to interact with.
The visual indicator with the key binding shows up before we can interact with the item. I expect the interaction to be possible as soon as the key binding is displayed.
When several items are dropped on the ground it is sometimes absurdingly difficult to pick the correct one.
At one time I was roughly standing in a door frame (door open behind me), trying to pick up a frag from dropped weapons. I got the visual feedback that I would pick up the frag, however the interaction closed and opened the door.
Currently the user must get into the proper position to be able to interact with the item he wants. May I suggest that when in the proper range and general direction for any number of items you list all these items on screen, in a matrix or a list, or a generally decluttered list and let the user picks the one he wants by aiming at his choice?