How do I drop things?
Solution 1:
You can select an item and move it outside of the inventory area and then release the item.
You can select an item, move it to the trash can, and then simply delete it. I know on the controller if you select an item with A, and then hit B, it auto teleports the cursor to the trash can. The delete key will also immediately trash a selected item.
Note that the former might get impacted by your wearing a ring that has a larger item attraction distance. It's conceivable you could re-pickup something.
Solution 2:
Press E to access the inventory. Then drag a item into the trash can on the right. You can drop it outside of the inventory as well but you just immediately pick it up again most of the time.