This was previously resolved in bug 25877 - reintroduced by bug 28118
1 - Make a branch not a pickup location
2 - Sign in to staff client as that branch
3 - Attempt to place hold on item from another branch for a patron at the branch this is not a pickup location
4 - No items available - libraryNotPickupLocation
Please, ponder the global solution proposed on bug 28338.
*** This bug has been marked as a duplicate of bug 28338 ***