A lot of that stuff you are trying to use can't be used there. You can't "use" helium filaments. Are you holding down the "X" button? It looks like you are just hitting a different button entirely since that's the reaction I get if I hit "A" over any of those items.
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I'm holding the X Button. Some of the Items aren't usuable in the tower but I can't even discard items. Unless I trade it in for a mission or something along those lines that is the response I get when I try to use or discard items.
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Have you remapped your buttons at all?
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Nope not at all. I play with Standard controls and controllers. Edit: Fixed it. Deleted my Vanguard Armory and Digital content pack and it started working. Might be something Bungie may want to look into.