Some items have to be moved to other slots in order for TSM to send the item.
Turn off Bagon and item was sent. It seems the default bag (1st bag) has an issue.

The issue is not with the bag; I had the same problem happen with items in other bags. The reason it worked when you turned off Bagnon is that you reloaded your UI, which fixes the TSM issue. You can get the same fix by leaving Bagnon loaded, and just doing a /reload - the sending will work.

I haven't tested whether I can reproduce the problem without Bagnon loaded, so I don't know if it's a TSM issue or a Bagnon issue.

Also, this is the issues list for Scrap, not Bagnon...