So I’ve set the loot filter to Magic + (Yellow items), but when I use the hotkey, it still picks up white items, is this a bug?
Lock Item Pickup.
Prevent pickup of loot that doesn’t meet your loot filtering level.
Make sure you check that box as well in settings.
How do you use filter ? In-game option or modding ?
It’s a game option. To the left of your hotbar, you’ll see a little gem. Click it until it’s filtering what you desire (I use green+). There’s also an option in settings for the pickup loot hotkey to follow your filter rules.