The issue with the "Teapot Falls" quest was fixed.

To select furniture, you should use the cursor by holding R2 and moving the left stick.

Please note that the R2 button may have a different label depending on your console:

PlayStation (and similar controllers): R2
Xbox (and similar controllers): RT
Nintendo Switch: ZR

It’s also important to check which Controls Mode is selected under Settings → Controls → Edit Mode Controls:

New Mode: Left Stick: Moves the camera. R2/RT/ZR + Left Stick: Moves the cursor only.
Old Mode: Left Stick: Moves the cursor only. R2/RT/ZR + Left Stick: Moves the camera.

Additionally, while in Edit Mode, helpful hints are shown in the bottom-left corner of the screen. These tips explain how to move the camera and use the cursor effectively.