The zombies have stopped picking up items. Any items dropped aren’t picked up by zombies even if given time. However items can be dispensed onto zombies but not given to by players.
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how often have you seen zombies picking up items? they won't always pick up items

Thank you for your report!
We're actually already tracking this issue at MCPE-14211, so I resolved and linked this ticket as a duplicate.
If you would like to add a vote and any extra information to the main ticket it would be appreciated.
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I believe that zombies spawn with a small chance to be able to pick up items (the value is called "CanPickUpLoot"). If you look it up you can probably find someone who can explain it better. @me if you have anything else to say/ask. 🙂