This is a known issue.
Thank you for the report.
It would be great to have this recorded in a video. It’s hard to see understand what the problem is from just a description.
You wouldn’t have a video of this occurring would you? From your description it is difficult to determine the problem. It would be good to have a video or at least a screenshot of your on death screen if this happens again so we can look at it.
Yes, this is a known functionality, most likely not intended because it serves no purpose. Most likely this will be address during a crafting overhaul. Thank you for the report.