I’m new to this game but my toon is not able to pick up 90% of the inventory I am finding. It is telling me that my inventory is full. I have two empty bags. What’s going on?
In game go to menu–> options --> controls–> press pick up put it into normal.
Are you having a hireling with you? If you do, your hireling’s bag might be full 
Most likely the jackpot answer.
There’s no other reason for it to happen. Items you come across will be inserted to the character’s inventory according to their appropriate class, e.g. your Wiz picks up a Warrior item, it will go to your warrior’s bag.
Hence it is NOT a bug, but a feature.
Necro