Versions :1.12.2
-Minecraft Forge: forge-1.12.2-14.23.5.2854-universal:
-Industrial Renewal IndustrialRenewal_1.12.2-0.17.6:

What happens: Lathe machine outputs 4 rods in every slot of the chest that is it's connected to

What should happen: make 4 steel/iron rods from one ingot

Logs (if necessary):

Additional Comments: This only seems to happen when a chest is connected directly to the output without any cables. This cannot be produced if you use cables to export items into the chest.