"SetEntityActive" Help.

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But Isn't SetEntityCallbackFunc still the more appropriate function to use? Since it includes “OnPickup”, “Break”, “OnIgnite”, etc?

Either one should do for whatever scenario, but for most practical cases there is no need to check for the type of interaction made. When determining which one to use, you should ask yourself: Do you need the second parameter? If you're not going to use it, then SetEntityPlayerInteractCallback would be the more logical choice.