I noticed while using TorchArrow that whenever the torch struck the ceiling, the arrow would stick but torches wouldn't be placed even though it's a vanilla torch. Would this be something that TorchArrow would have to add compatibility for? or is it something that would be handled by this mod (since TorchArrow is its own item)?

It can theoretically be handled by either mod, though depending how the placement of the torch is implemented it may be easier for TorchArrow to add support for Ceiling Torch. Do you have a link to the mod please?