Sounds like you may be experiencing the old “hatchet animation bug”…?
If you go into 1st person and look down, can you see into your own body?
Are you also having problems fighting short creatures with a sword, like the red imps or crocodiles?
If so, then yes you too have this common affliction. They know about it and they’re working on it.
Until it’s fixed… suicide is the answer my friend!
Seriously tho, killing yourself (usually by removing your bracelet) will reset your character and let you harvest like normal until the next time you log out.
I have to start every session with my solo character this way. I then harvest my own body with a yog cleaver and axe to test it’s fixed after I respawn, and self-cannibalize to restore my health.
It’s one of the reasons I started a new character on an online server.
I haven’t heard a correlation with the pickaxe yet tho. You may have found the trigger if it is the same bug.