When in Live mode, items in a Sim's inventory cannot be dragged and dropped in order to place them. It will just stay in the inventory. The only way to work around this is to click the item and then ...
Ideas
I'm having this problem on PC too, no mods or CC. My Sim has moved a lot though, so I'm wondering if it's an ownership issue. I had a lot of issues on this save when she was at university with taking an item out of the inventory, and then it wouldn't let me put it back, it said she didn't own it. I'm playing a legacy so some of this stuff came from parents or grandparents houses originally. It hasn't worked since the update on 7/29/25.
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