See here:

The torch and pickaxe are black because it thinks there is no light, since there is no light source, just the light coming from the torch itself as dynamic lighting is turned on.

I apologize if I am using insufficiently technical language, I know very little about graphics and game development.

Need to confirm this issue in the latest 1.17 build.

Can confirm this with Canvas Standard in Canvas 1.0.1690. Seems like a pipeline shader bug.

Yay! 🎉