Golden Pickage - No Item Drops

This affects my client in single player and when connected multiplayer to my remote server

Client
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OS: Windows 10 x64
Java version: 1.8.0_51 x64
Game version: 1.8.8
Launcher version: 1.6.19 (via msi installer)

Server
======================
OS: Ubuntu 14.04 x64
Java version: 1.8.0_60-b27 x64
Game version: 1.8.8
Launch arguments: -Xmx8g -Xms7g

(please request hardware specifications if required)