I don't know if this is just me, but ever since the patch adding the June Items, the cut power doesn't work on anything other than the ragdoll, and sharp objects like swords or bullets don't break any other items anymore.
I've reverted the change now. Thanks for the report. It was supposed to be a small optimisation thing, but ended up inadvertently affecting cutting items too much.
I've reverted the change now. Thanks for the report. It was supposed to be a small optimisation thing, but ended up inadvertently affecting cutting items too much.