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Check your keybindings and try again.
There is no need to "alt click".
edit: plus everything posted just before me above.
While i've seen a lot of people answer with the Ragnarok DLC not being installed, there is another aspect to it. It most likely has to do with your item filter, that's a thing. In the "Keybinding" menu you will see that you can use: Alt, Z, X, B and N to filter the item drops. When you have pressed the ALT key ( activating the grey/trash filter ) If there is stuff that drops from a chest or mob, like sword, armour, etc. and you don't see a tooltip for it, it is most likely trash ( grey name ). To see those press the Z key ( z removes all filters ), all the greys will pop up, but imo that will just clutter your screen with useless stuff early on. For now i have mine set to X ( x filters grey and white names, so i don't see their tooltips ) and its working fine, i see only the yellow and above drops.
Hope that helped ya.
tl:dr It's your item filter toggled, you can check it out in the "Keybinding" menu ( Alt, Z, X, B, N )