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This project is a recreation of an old mod that I used to love, but which sadly has not been maintained in some time. The mod allows the player to specify which items will and won't be auto-picked-up.
Once Valheim is run with the mod installed, a config file will be created (Pip.AutoPickupIgnorer.cfg). In order to ignore an item for auto-pickup, open the config file remove the # in front of the item.
There is also a configurable hotkey (' by default) that will toggle the pickup behavior between three states:
Source: Github
Install with BepInEx
Copy AutoPickupIgnorer.dll into the BepInEx/plugins folder