Bug Report ID: #3539256440 - "Proximity loot labels?"

"Proximity loot labels?" appearing despite everything being off - controller only

I play on PC but use controller (PS5)

Prior to the recent update, 0 issues with items appearing when they shouldn't based on where my character is standing in relation to where the items are on the ground.

Since the update, having item labels OFF will still show items on the ground once I'm within a certain distance to them.

Resetting my loot filter doesn't fix this. Turning the filter off completely, the issue still persists. ALL item labels will be OFF, but once I'm close enough to an item on the ground it will show every item within x proximity to me.

EDIT: This doesn't happen while using mouse/keyboard, walking near items keeps the item label off like it's supposed to.