Picking items issue

On xbox the A button to pick items appear only once you have killed all monsters near the item. This playing solo isn't a problem but playing in a party means basically no loot cause people, obviously, pick good items instantly.

It's ultra annoying, I agree. I hope there will be a fix in the future.

Change the default item allocation to permanent allocation in Options>Game. This should grey out any look meant for the other party member. If they try to pick it up and do not have room the loot will be available for anybody.

I'ts not just about picking up items but the game should have improved it's performing an action. There are several scenarios where it's very inconsistent. The most annoying ones are sanctum, shrines. Divine shrine does exist in the game and it's very annoying when you cannot kill the invulnerable mobs so you have to lure them out of the shrine to kill them and then you can access shrine. In POE1 the shrines were still better IMO but they still had the same problem. We need a better solution to actions.

This is pretty big problem for Xbox players.
I'm in the late game / mapping and I still cannot get through my third ascension in the Trials of Sekhemas. The reason being (and I believe similar to item pickup) is the focus of the A button are used for both interactions and skill assigned (most of us do). I get far into the trials until the time trial comes up only to run up to interact and it will not allow me to interact, it shows A notification but then disappears, similar to items. So I spend a lot of time running but eventually lose as time expires.

I'd really like to progress in the game and at this point I can't. Pretty frustrating.

Update---
I did some further testing and removing the skill bind for A button solves this issue. You can pick up items and interact with shrines during combat. I'd still like to bind A to a Skill but this is a workaround.