The electromagnet isn't responsive of the hotkey to deactivate itself when is on the baubles inventory, also can't be placed it when isn't active. Is this a bug, or intended behaviour?

The second one is the intended behavior. The first one only if the inventory is full.

There is a config setting to allow a deactivated magnet into the Baubles slot.

The magnet won't turn on with the hotkey in a baubles slot if I have the config set to allow a deactivated magnet in the slot. It really seems like it should.