I have a rogue and in the inventory is Thieves Tools Masterwork and the +2 is applied. However, when I attempt to pick a lock, it says No Lockpicks! in blood red.

So yeah. I looked to see if it needed to be equipped but no slot (besides, upper right corner shows the +2 masterwork applied).

So I think this is me just missing a button or something.

Are lockpicks separate from Thieves Tools??

yes lockpicks are a type of tool your thief should always carry (see image)

Ok thanks. I had thought they would have been part of the Thieves Tools.