Steps to Reproduce

1. Place a repeat command block that says /tp @p[tag=spam] ~ ~1 ~.
2. Run in chat /tag @s add spam (so that when you finish you can use /tag @s remove spam to stop being stuck)
3. Get yourself a snowball, a fishing rod, a water bucket or other useable item.

Expected Result

You can use the items, as in older version (see attachment. I use 1.19.60).

Observed Result

You cannot use the items. You can place blocks though, but what's interesting is that when you place a bucket of water, the water is not updated and won't flow (see attachment).