You can only have one hot steel in your inventory. If you try to make another one it will just stay raw. In order to forge, you have to go through the whole smithing process; Heat up -> Anvil -> Water -> Sharpen. Then you can make another sword this way.
In the default mod settings, lockpicking is a skill you have to learn first in order to use it. If you want to have it the vanilla way where it's not required, you can set it in the bench settings. You can find a special bench on the exchange place at the start of the game, in your free hut in the Old Camp, and in 2 other places that I can't remember.
GaroK9
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