I'm fairly certain they werent dropped. I walked about in the immidiate area when it happened to check if i'd tossed them somehow (i dont have 'throw' assigned to any button, cuz i hate accidently dropping things), and it was just a simple touch on the items when they disappeared, not even a drag.
Im going to try again with some expendable items to see if maybe pulling up the menu while there's action going on has anything to do with it.
On another note id like to say i really like the new lock-on aiming, it makes yo-yos a lot more useful, and a whole lot more fun as a weapon.
Right on, worth an ask. I ticketed this for PWQA to look into today, since the two of us are not able to find a 100% repro step/root cause, having more hands on deck may help.