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Thanks for responding! I am on a Mac, I purchased/downloaded through Steam. I did a little more testing. The first item drop on a new game appears to work normal, gets added to inventory and the orb disappears, subsequent items do not get reliably picked up and orbs do not disappear. If I mash the action button right at the end of the battle there is a chance I will get an item added to inventory, but majority of time it does not. Might be a misperception, but it seems to get less likely the more battles I fight. Items definitely do not got added or picked up by default, so collecting things for quests like fish eyes is basically impossible.

ah ok thanks i will look into it!