I'm running the latest (.12.22) version of factorio and have been able to reproduce it using the configuration stated above.
I doubt you guys will need save files or paint-edited pictures on this one but feel free to ask

It has always bugged me because when lines "Back up" the yellow inserters ARE able to grab the Items.kovarex wrote:Ok, we decided to close this as not a bug.
a) It is direct result of the world simulation logic
b) It can be used as mechanics.