Issue with Physics on Item I equip

I am working on a top down game and have a loot system in place where when the mob dies it drops a random number of pieces of loot however when I goto equip like weapons or armor to the character, it will attach to the socket but it stays at the location of the attachment and not with my character as I move around. as you can see in the images I posted with it, the sword goes on the characters hip when I equip it but then when I move it stays where I was when I equip it. The game still knows I have it equiped and when I pull it out to attack with it then it doesnt move. I didn’t have this issue when I had simulate physics turned off on my items but I want them to drop to the ground when a mob drops them so I turned it on and it messed everything up.