I've also submitted this issue to the GitHub for Nature's Compass.

When using both mods together in 1.12, upon making the Nature's Compass, it was a gray wearable backpack, and not the compass. It's such a bizarre conflict of mods that I'm not sure why the hell it would do this, so I figure perhaps there's something going on with one of the mods that should be looked into.

Closing since it's an issue with Nature's Compass and being fixed ❤️

There was an issue with item models that should have been fixed in the latest release.
Are you using 3.0.3 or 3.0.4?

Linking to other issue: MattCzyr/NaturesCompass#5

As far as I can tell, this is just an issue on the end of Nature's Compass. Will be fixed with a new release in the next couple days.

@MattCzyr: Cool. Feel free to look into the issue I mentioned above in case you made the same mistake as me. PaleoCrafter has described the problem pretty well.