Item drops disappear after a few second

Ever since 2/7/25 all drops last for a maximum of 5 seconds before disappearing. I am able to grab what I can in that time, however if combat is still ongoing then it will just go away. I have lost way too many great items because of this. Is this some strange new setting that wasn't announced? or is this a bug that still need to be worked out?

Your item visibility or highlighting has been turned off. This affected a lot of controller players after the last patch, but could also happen with keyboard if you hit the default keybind for disabling/toggling highlighting (Z).

See this thread for a summary of re-enabling it.