Ok, here comes the big text.
Basically I made a new EventSheet called SwordControl and put some basic stuff in there. I guess that will get you going, You can use my project and complete it with your other stuff.
You were going to deep where there wasn't much need. Sometime it's simpler than you imagine.
Something I wrote down while messing with your project:
Sword > On animation "Throw" finished > Set animation to "Throw"
This makes no sense. Just set the animation as a loop. (I did it)
The variable SwordGone is the opposite of HasSword, so there's no need for both of them. It just complicates stuff,
just use the inverse instead. ( So I deleted SwordGone).
Collisions get all buggy when you change the polygon shape of an object (especially physics ones), you need to set a single
collision shape for the whole animation.(preferably all the animations)
On start of layout> Sword> Destroy (check SwordControl sheet)
Change on collision with sword to overlapping (so in case I throw it at my feet, there's no need to move away and back to it).
I'm using 2 variables to control sword pickup, canPickup is delayed by a half a second to be set to true after the release,
this way it has time to leave the collision area with the player, otherwise you would pick it up right after release,
meaning it wouldn't fly away.
Removed the physics behaviour of the sword, there's no need for it as it already has Bullet behaviour with gravity.
Also the Pin behaviour doesn't work well when used together/along with physics.
That's it, let me know if you still need help. Read all the comments on the event sheet to understand what I did.
ps: just tag me with caiorosisca in case you need an answers. Makes it easier to keep track of the topic.