Hi, items vanishing on click-and-drag is still happening on the current demo version (Win10 x64, using mouse and keyboard controls). I have permanently lost both cockrings that were available in the demo, as a result (was able to equip a buttplug only via auto-equip when buying one from the Twink Orc merchant)
I noticed, as I dragged the cockring to equip it, the game lagged as I was doing so (which seemed strange as my computer definitely should be able to run this...). And when I released my mouse, the cockring stayed suspended over the equipment slot, which initially led me to assume I'd succeeded in equipping it.
The first time it happened, with the worn cockring, I assumed it was jokingly having the ring fall off my cock because it didn't fit. I abandoned that theory once the steel ring also vanished without a trace...