Since the/a recent VRChat update, held pickups phase through everything. Since the beginning of last year I've been developing a playable instrument that depends on Pickups not being able to pass through colliders they're supposed to collide with. As of now all pickups may pass through everything and also begin to jitter after passing through an object they're not supposed to.
Here is another video that demonstrates how the colliders should be working with the exact same upload of the world: https://twitter.com/DrakenStark/status/1356948386448953347?s=20
This is an issue on all SDKs and platforms.
I have tested it myself with both SDK2 and SDK3 versions of this world for each PC and Quest. You can go here and demonstrate the issue by picking up a mallet on the stage and attempting to play any note.