I have created ATEST33BETA A, a game available to friends and admins, published to the steam workshop.
I have added an M4 from the FPS Weapon Pack to the level. The weapon can be picked up and used sucessfully when running from the leadwerks editor, but can not be picked up if you run from the Game Player.
This was created using the Leadwerks 3.3 beta version after the fix that will display the starting weapon.