A sheet of iron and steel sinks because it displaces a small volume of water, resulting in insufficient buoyant force to support its weight.
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A ship doesn’t sink because its shape allows it to displace a large volume of water, creating enough buoyant force to support its weight.
The bucket feels heavier out of the water because it is no longer supported by the buoyant force, and you feel its full weight.
You feel lighter because of the buoyant force exerted by the water, which partially supports your weight.
Pressure exerted in any confined mass of fluid is transmitted undiminished in all directions.