How to make item picked up never collides or overlap?

[Cestarian]

For what you’re attempting I agree that widget approach is the best, however there are other ways, here are 3 different ways:

Use a springarm:

NO CODING - How to prevent weapons from clipping into the walls in Unreal Engine 5 FPS games

Use material fuckery:

Unreal Engine 4 and 5 - FPS Weapon Render Fix - Stop Your Weapons From Clipping Through Walls!

Custom depth buffer/stencil:

Unreal Engine | VFX Tutorial Custom Depth Buffer - X Ray Material