Aviak Guards Lake Rathe
 

The guards at the arena spawn when killed occasionally give the error that they cannot be looted because I am too far away when I'm literally on top of them. First time it happened the bird was in the water straight out from arena zone, second time (just now) I was slightly North of the entrance to area.

Just happened again, South of the arena entrance. Seems to be happening more frequently.

Loot it from the height you were at when you killed it.

They were on the ground though. I tried getting higher but as a halfling that was pretty difficult.