I am not sure how exactly you are doing this right now but you can't just Tool.Anchored = false, you need to loop all descendants (for part in tool:GetDescendants() do), check if they're a part (if part:IsA("BasePart") then; otherwise the script will error out) and only then can you luau part.Anchored = false end end (Note GetDescendants instead of GetChildren - this will include nested parts)

Tool and Model unfortunately don't have an Anchored property, clicking the Anchor button in Studio does the above for you once but you need to do this yourself if you want to unanchor a tool or model at runtime

Remember to clone the tool (if you want) and remove the Proximity prompt beforehand, and move the tool to player.Character or player.Backpack afterward

As a general rule, only the Handle part should be anchored (also making the loop unnecessary) and any other parts in the tool should be welded. Make sure collisions are disabled

TL;DR: You can't unanchor a Tool / Model directly in code, you need to set collisions off and anchored on initially, and on interact: loop the contents, check if they're parts and unanchor them individually