Title. As of today's update, this mod no longer allows players to pick up ANY items at ALL when hosting through Steam Directly. Tested with other mods, and this is the only one to disable item pickup for all players. Items are able to be picked up when hosting Single Player.
Tested with new characters, old characters, new worlds, old worlds, restarted PCs, hosted from different players on different PCs; it's just this mod.

Other mods tested with this mod.
AlchemistNPC Lite.
Boss Checklist
Calamity Loot Swap
Calamity Mod
Calamity Mod Music
Calamity Ranger Expansion
Calamity Rarities
Calamity Vanities
Craftable Accessories
Dictionary of Prefixes
Fargos Banner Boost
Koko Net Lib
Magic Storage
MrPlagues Authentic Races
Multiplayer Boss-Fight Stats
Plantiful Ores
Recipe Browser
Reduced Grinding
Shoe Slot
Sleeping Passes Time
Subworld Library
Upgraded Accessories
Weapon Enchantments
Which Mod Is This From
Wing Slot Extra

Might want to revert the change/patch that went out today, or pick apart the changes and find out what broke>
Thank you for reading.