That doesn’t seem like it would be intended. I assume it’s a bug? Found a bucket at a farm and it won’t let me use it to contain water. Says I have no suitable containers.
Are you holding the bucket in your hands or in inventory?
Inventory, do I need to wield it? No other container seems to work that way.
Buckets, pots, pans, open cans, glasses and other similar containers only work when wielded or placed on the ground.
When in doubt, check the Item itself. It it says the Container is resealable, then you can carry it in your inventory. Not resealable Items can, as CT said, only be carried in your hands or they have to be emptied out before putting them in your inventory.
That said, maybe someone should add buckets with lids, for resealing. Those do exist, and they could come in handy.
Those aren’t the kinds of buckets you’re going to find laying around nearly as often. Just a regular old mop bucket is what I’d put my money on finding first. Bucket with a lid is kinda…niche.