This happens because campfires store their lit state in blockstates.

If this is fixed it would also be cool if lit furnaces, smokers, blast furnaces and maybe candles and candle cakes could be used for lighting torches.

Hm I didn't think of that. The problem is that everyone says I should be using block tag json files, but those don't allow for blockstates. I hear there may be another proper solution, but it might take a bit.

Maybe you could check if the block has blockstate lit: false, and if so disable lighting a torch with it, at least until there is a proper solution. This would work for all of the vanilla blocks and wouldn't cause additional problems with modded ones.

hm, I think I can do that yea