In this occasion (before the recording) I was putting my inventory into a desert temple inventory box. Then I realized the bug was not allowing more items to be put in.
Here is a recording of the bug and how I resolved it. You will see a blue terracotta item is taking up a spot in the crate, is invisible, and cannot be moved/utilized until I restart the game.
Another example. Bug occurs at 1 min and 59 seconds.
Captured gameplay before bug occurred this time.
Pick axe breaks while mining orange terracotta, character picks up orange terracotta which is invisbile/inaccessible. Restraining game reveals blocks in 2nd inventory slot.
https://youtu.be/FxwSQtBNaOw?feature=shared