There's a plug-in on Rcham 5x that instantly transfers loot from barrels into your inventory, and also makes the barrels 1hp. Willing to pay for this to be made. GMATTHEW#7920
Barrel to Inventory
I think the following plugin does that.
https://umod.org/plugins/auto-pickup
Merged post
I was testing that plugin earlier and realized that the barrels don't auto break with the default config. You have to increase the LootContainer "Check Radius", and then the barrels will auto break. I set to 3.5 (just over one foundation long) since that allowed it to work with spears at max melee range.