Yes this is possible with the mutator zone device both in creative 1.0 and in UEFN but it lacks the option to specify the lifespan of each drop-able category which makes all weapons and all drop-able items disappear when dropped.
In my case players have to collect a certain amount of limited Items while battling each other to win, if I enable items to be cleared when dropped with the current options/devices available in UEFN, the game will also delete the objective Items and make the game impossible to win.