I’m sorry for necroing an old thread but this is still NOT fixed. I did this quest 5 minutes ago and was unable to pick up the scabbard even when it was marked.
What I did:
Picked up around 5-6 dwarven relics and then the next quest objective became visible (Pick up the dwarven scabbard), it was perfectly marked on the map and as I moved towards it and tried to pick it up it wont let me, no error message or whatsoever. Also, when i tried to pick it up (what didnt work), the game won’t let me cast spells, so i checked if i had a DC but that wasn’t the case. As I was attacked by the pirates the only skill i was able to cast was Decoy (Mesmer), all other spells didnt work. Had to relog and do the quest again from the beginning for it to work.