I’m trying to make a 2.5d style game where you have a side on view of a work table, you can pick up objects, move them around, and when you drop them they fall. Considering some of the objects are of different sizes I can’t want to just use barriers to try and contain the objects (also that could get really janky) so how could I limit the movement of the objects so that when they fall, they only move in the X and Z axes and ignore the Y?
Yes, in the mesh details see Physics | Constraints. Here you can lock the location and/or rotation of set a ‘Mode’ to limit the movement.