I saw that #2 added support for pickletweaks however this no longer seems to be the case as its magnet still grabs items and XP. Changing range or redstone has no effect. For testing purposes the thermal magnet is affected (but that magnet is subpar). I also tried placing the demagnetizer at different height levels to see if that had any impact but it did not. For verbosity I added demagnetize to skyfactory one pack. I also tried it in a separate instance with only PT and DM but still same results.

Demagnetize: 1.16.2-1.2.2
Pickletweaks: 5.2.6

If this requires a change to picketweaks itself please feel free to close this issue and I'll ask them for support.

Happy holidays.