The DML Loot fabricator has a bug when producing snowballs.
It is set to give you 64 snowballs per pristine matter, which makes sense because snowballs are ridiculously cheap. However, the max stack size of a snowball is 16. The loot fab doesn't know this and produces stacks of 64, which are overstacked.
This also causes the loot fab to be full even when it doesn't appear so:

Solution: Increase the max stack size of snowballs to 64. This would also be good as a QoL feature, as in #728 .

This is a known quirk of producing oversized stacks of snowballs and how DML computes its output area is full. It does not have any negative gameplay impact, and as you note this issue duplicates #728 which is asking for a superset of this change to be made.

Closing as duplicate, since we're already tracking the other issue.