could there be compatibility with hardcore torches? It adds unlit and lit lanterns, but they can't be put in your belt slot.
So, you get dynamic lighting when it is lit and when it runs out of fuel, it will no longer emit light but still be equipped.

https://www.curseforge.com/minecraft/mc-mods/hardcore-torches

hardcore_torch_backslot_compat.zip
It is already compatible, made an example datapack which adds the lantern items to the backslotaddon lantern tag