In newer SDK's [currently tested 3.10.3] the GameObject's layer that the VRC_Pickup component is added to doesn't auto swap the layer to [Pickup] anymore. This is an issue as the pickup layer had passthrough on collision and stopped pickups from stopping movement, flinging players around, or worse though the world breaking experiences.
A previous project I had [SDK 3.8.1] retains this functionality. So I'm unsure when this stopped being changed or why.
This would prevent new world creators from having to set the layers manually if they even learn of these issues.