In the config file physics is enabled on the grabber but physics is not enabled in the script that imports the config. Disable physics in the grabber settings so the grabber uses distance based intersections.
Attached is an example that maps one of the wand buttons to the grabAndHold function of the grabber. There is also some custom code in the postInit function that increases the grabber's intersection distance. This will make it easier to intersect objects for grabbing.
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