Hey there @lucagummy! Welcome to the community! So this is a common issue when it comes to physics based grabbing systems and depending on your use case you may want to handle it differently.
Most users opt to not allowing the player to grab something directly below them either via collision checking an area near the feet, though this can cause issues with larger objects that would clip your feet regardless. Alternatively, you can just disable the physics collisions between carried objects in hand and the player capsule by making a new collision channel for held objects, but this means if you release it in collision with the player, it causes de-penetration to occur and that can cause some interesting issues.
Though there are many ways to handle it depending on exactly how you’d prefer the failing to lift the player part to work.