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Currently if you pick up an item and then drop/place it before it fades from the list, the item count shown stays the same (and you can get it to show more items than you actually have by dropping and picking up the same item repeatedly). It'd be more accurate if the item count decremented each time the player loses one of that type of item (and when it reaches 0 the entry would be removed from the list immediately). Ideally this would be a toggleable option if someone wants to keep the current behavior

(I don't know how easy it'd be to hook into every method in which an item can be dropped/removed from inventory, so pardon me if this is unrealistic)

Pick Up Notifier is only supposed to handle collected items. For your use case this mod should work: https://www.curseforge.com/minecraft/mc-mods/inventory-spam