Guild Wars 2

A workaround that I haven’t tested yet is to swim right up to the edge of shore and drop it, then exit the water and pick it up again.

Galmuth.3967:

I was playing through this as a charr as well and encountered the same problem. If I switched to my engineer kits, or left the surface of the water, the quest item would disappear. The workaround I used was to drop the item near the shore while still underwater, then get onto land, and pick it up from there. It’s a pretty janky way to complete this, so I hope they’ll be able to fix it.

Thanks for the work-around.

I am having the same problem, I have re-ran the mission several times trying different things but the result is always the same as OP.