This still happens in current versions of Minecraft. After some testing, it is the player being pushed into the edge of the block that seems to stop player from being able to pick up items.
I also don't see how items not being picked up by the player is similar to items not displaying correctly in the linked bug report. My recreation is similar to the way people try to mine obsidian from a lava lake safely with flowing water. The flowing water prevents player death and item loss when there are extra lava sources below. My recreation below helps you from having to mine obsidian while having the same bug.
Recreate: make a 2X6 hole one layer deep, place a water source in to one corner. Add a dropper with items inside so it drops them into the water source. Hook up a button to the dropper with redstone dust that can be pressed from the opposite corner where the water flows to. Hop into the water and let the water flow drag you to the corner. Once there, press the button to activate the dropper. The item will flow to your feet, but not be picked up. Anytime I move away from being pushed into the edge of the blocks, I pick up the item.
Paul Haisler
This still happens in current versions of Minecraft. After some testing, it is the player being pushed into the edge of the block that seems to stop player from being able to pick up items.
I also don't see how items not being picked up by the player is similar to items not displaying correctly in the linked bug report. My recreation is similar to the way people try to mine obsidian from a lava lake safely with flowing water. The flowing water prevents player death and item loss when there are extra lava sources below. My recreation below helps you from having to mine obsidian while having the same bug.
Recreate: make a 2X6 hole one layer deep, place a water source in to one corner. Add a dropper with items inside so it drops them into the water source. Hook up a button to the dropper with redstone dust that can be pressed from the opposite corner where the water flows to. Hop into the water and let the water flow drag you to the corner. Once there, press the button to activate the dropper. The item will flow to your feet, but not be picked up. Anytime I move away from being pushed into the edge of the blocks, I pick up the item.