I am having trouble finding information on crafting the new upgrade to add crafting to the backpack. Is it a craftable upgrade or is it something you have to find randomly in the world? If it is craftable what is the recipe?

Next update is going to add all recipes to recipe book

It is craftable, you have to put blank upgrade and crafting tabler above it in crafting. You apply the upgrade like rest of the upgrades in smithing table

Awesome thank you