Like in the title, this item cannot be extracted from refined storage system in the 1.21.1 version. The mod dev has instructed that if any issues like that arise to report it to the dev of the mod that adds the item, or I guess in this case, that modifies an item.
https://refinedmods.com/refined-storage/items-cannot-be-extracted-from-refined-storage.html#_for_mod_developers
This is the link that the Refined Storage dev has provided so devs of other mods can solve the issues quicker.