^ Spools are working in the port tailor
I broke the loom then fixed it. It looks like what is triggering it is when you try to use a container on the crafting table it is:
-Not creating new slots
-Breaks the table
-Only way I have gotten it to work is removing everything think and then manually adding it back to the table without the containers
Confirming:
I was in Port a Lucine in the Atelier du Progress. I put the iron ingots in the smelter with the bags, added the charcoal to the smelter with the bags without being able to create new slots. Tried to make steel, received the "improper materials message".
Went to the other smelter put the materials by hand, suceeded. In the same smelter, creating more pages before using the bags, I added the materials using the bags, tried to make steel, suceeded.
Went back to the first smelter, put the materials by hand, tried to create steel, failed.
Probably the problem is, as mentioned, "breaking" the table by putting items using the bags without room. Noah probably managed to use the same table by waiting it to reset. Using different tables work. Also, the materials do not get corrupted.