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Hovering over inventory items doesn't highlight them

I'm having trouble getting my cursor to highlight the objects in my inventory by hovering over them.

As soon as I open the inventory the first item in the inventory is selected (I don't think this is default behavior?) and I can select other items by using the arrow keys. Using the mouse I can click on other inventory items and they get selected fine. The main issue is that when I hover over another inventory item the first item in the inventory always remains highlighted with the name of the item displayed with the Hotspot menu item. Expected behavior would be when I hover over another item, the hovered over item would get highlighted and the hotspot label for that item get displayed instead, but this is not the case.

Some additional info, I am able to deselect the first item in the inventory by clicking outside the inventory box and when hovering over the items in the inventory none of the items get highlighted and none of the hotspot labels get displayed.
My movement method is First Person and Input method Mouse and Keyboard

This was working in my game before, however I recently updated project from a really old version of AC and Unity from a few years ago. I've experimented changing the settings in the Settings and Cursor managers, but nothing seem to change for this. My inventory is using UnityUI. I also have the Hotspot menu below my Inventory menu in the Menu manager.

Any help pointing me towards a solution is appreciated!
My settings are below:
Settings manager

Inventory box menu settings
https://www.jasongodbey.com/wp-content/uploads/2025/01/InventoryMeuSettings.jpg

Cursor manager settings

Hotspot menu settings

Comments

  • Can you share images of your Inventory menu, and the top of your Menu Manager?

    It sounds like the menu is under direct-control. If the menu pauses the game, this will be the case if Directly-navigate Menus when paused? is checked. Otherwise, the Engine: Manage systems Action is necessary to control menus during gameplay.

    More details on the rules by which Menus become directly-navigable can be found in the Manual's "Navigating menus directly" chapter.

  • Thank you, Chris! I just had to set the Direct-nav-in-game Menus to Disable when my inventory opens. :)

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