forge-1.16.5-36.1.32
lootbagmod-1.16.5-2.3.1

Whitelist does not work when using the /reload command.
Restart the minecraft client and it should work fine.

config: https://paste.dimdev.org/fewosuyapu.bash

The lootbagmod config is a client side config and as such is reloaded using the reload command. The only configs that are reloaded when using the /reload command are the world specific server configs which lootbagmod dosent have.