When I died in the nether, even though I had KeepInventory on, I still dropped my bracelet and necklace. I was still able to pick to retrieve them, so they didn't become fake items when the issue occurred, at least that is not another problem. I was playing on the latest stable build of Agrarian Skies, if that helps.

This is a good suggestion. However, for now, there is a config option that lets you keep jewelry on death, I think it's in other.cfg. That is actually on by default, jaded switched it off ;P

I'll add to my todolist.