Thanks to ComteJerod for catching this one.
At the risk of boring ya - the rewrite of the interaction system in patch 1.1 *is* wonderful. But it unfortunately did not take into account a single *very* necessary object outside of that system.
So that is now fixed.
If you wanna complete the game, ya gotta download this patch.
As always, keep letting me know if ya experience any issues :) <3