Cant touch that perk still lets you pick up items, if you are kneeling with mouth open.
I actually didn't know that!
Psychic perk actually also does allow bypassing it partially by letting you pick 1 item per interact while shuffling the rest.
Oh so this is the effect of psychic? I thought it's just how "can't touch that" works in general, that it has different levels of impeding one from picking up things. For normal drops it works in this way, and one just cannot pick up exit keys or shiny objects.