PSA
Inventories have changed a bit recently, not sure when exactly as I just recently noticed this. It used to be if something gets added to your inventory while its full then it would drop to the ground. For example crafting multiple armor pieces would eventually start dropping to the ground when your inventory got full. Now, it can keep filling up beyond the visible inventory slots to new ones you cannot see. This also applies to other inventories such as crafting benches or campfires, etc. Some basic testing resulted in all inventories tested are like this so it likely is universal.
You can move some stuff out of your inventory so that you can see some empty slots then hit "sort" and it will move it all up and fill in the empty slots. In other inventories you can "take all" to get the items buried deep beyond the visible slots.
This has an obvious advantage since it seems like an endless capacity now, but its more of a pain to work with and seems less advantageous once you get more resources and the ability to easily make more storage.