I can only think of storing a boolean via capability on the player, and listen to item pickup event, is there a better way to do this? It doesn't sounds good that it needs to check player's capability and compare the items every time there's an item being picked up, also I don't want to do it as advancements since I want there to be a way to disable it. Thanks.

I haven't looked into it too much but passing in an ItemPredicate into InventoryChangeTrigger.Instance#forItems then using InventoryChangeTrigger.Instance#test seems promising.