Hi RaCailum,
Thanks for taking the time to test this and confirm the issue!
I've investigated the recycling behavior, and it looks like you've run into an issue with the older Deadlock stacking recipes interfering with Factorio's automatic recycling recipe generation.
The good news is that this exact type of issue was already addressed in my Factorio 2.1 continuation, starting with version 7.0.9.
I also have to admit, I completely forgot you mentioned that you're still running Factorio 2.0 in your original post, so I was a little confused while investigating this. That one's on me!
Unfortunately, since you're still running Factorio 2.0, that fix isn't available in the older version you're using.
If you eventually upgrade to Factorio 2.1 and encounter the same issue with my latest release, please let me know and I'll gladly investigate further.
Thanks again for reporting it and doing the troubleshooting!