There were 2 inventory tags I had to remove since everything goes to the inventory now, there is no tag for it, and something can't go to the hot bar.
There were some sprite name changes (raw-wood -> wood, stone-wall -> wall) as well as similar item changes, and the size for the coral icon was changed. Finally setting a size for 0 is not supported for stuff. Not sure what to set it to so I chose 128x128 and it works now. Valid ranges are 1 - 4096.