Using Exordium with this mod makes the fade effect not show for items only.

With Exordium:

Without Exordium:

You can try to enable the force blend mode, otherwise it's for the #159 pile. Also, make sure you are on the latest version.

No luck on the blend option, disabling hotbar buffering fixes it at least.

Then that's the solution for now. Only Paperdoll and xaeros minimap are currently "supported" hud mods. Anything else is hit or miss that either works, doesn't work or only with workarounds like this.