This is an issue I've come across on ps5 to. Randomly an item will lock to an inventory slot, and you can't move, craft, or store the item. The only way to fix it is to leave and rejoin. As far as I know this has been a thing even before 1.21.

Here is a video of it in action (I forgot to show leaving and rejoining solves this issue)

Untitled video - Made with Clipchamp.mp4