raycasting from screen for selection not working

Long time lurker. First time poster. I'm trying to make my game respond differently depending on whether the player clicks on the environment or an npc/interactable object.

I'm running into an error that has me very confused. It works perfectly when I click on the green keycard in my scene but when I click on an NPC it rarely works. I have tried changing the NPC's layer and collision object. The NPC script and the item script are both subclasses of interactable. Here's my code:

Code (CSharp):

1.             if (Input.GetMouseButtonDown(0) && equippedWeaponAbility != null) //TODO: make on drag method for automatic weapons
2.             {
3.  
4.  
5.                 RaycastHit hit;
6.                 Ray ray = playerControllerCamera.ScreenPointToRay(Input.mousePosition);
7.  
8.                 if (Physics.Raycast(ray, out hit))
9.                 {
10.                     Debug.Log("[PlayerInputListener] hit object: " + hit.collider.gameObject);
11.                     Interactable hitInteractable = hit.collider.gameObject.GetComponent<Interactable>();
12.                     if (hitInteractable!=null)
13.                     {
14.                      
15.                         equippedWeaponAbility.TriggerAbility(this, hitInteractable);
16.                         Debug.Log("[PlayerInputListener] hit interactable: " + hit.collider.gameObject);
17.                     }
18.                     else
19.                     {
20.                         equippedWeaponAbility.TriggerAbility(this, hit.point);
21.                         Debug.Log("[PlayerInputListener] hit non-interactable: "+hit.collider.gameObject);
22.                     }
23.                  
24.                 }
25.  
26.  
27.             }

The layers are set so everything collides and I tried changing the NPC's layer so I do not think that is the issue. Initially I had capsule colliders on my NPCs but I switched to boxes to match the key item. Still no luck.

When I click the NPC it almost always hits Cube.012 which is the floor. I have also tried removing the background so everyone is just on a plane and I get the same result.

Any help would be greatly appreciated. Thanks!