I have disabled all my texture packs thinking that maybe they are responsible but no
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The item sprite has been flipped and rotated exactly the same as every other item.

so if its "exactly the same" why does an sapling look properly mirrored while the bread looks like a poke-stick,
if we were holding a pickaxe in the offhand the same way as the bread, would it also look like we are holding it by the tip of the handle and faced towards our head

Actually, you are correct. Sorry, my mistake 🙂
Even steak looks wierd!
Included in MC-93096