Possibly related, I've noticed that when sending recycler output to a chest, and having two inserters coming out of that chest, one whitelisting wanted items, and one blacklisting those same items to get everything else, well... the blacklist inserter grabs the "scrap-recycling" item, which then is instantly (within the same tick) converted into something else, possibly including something that was in the blacklist.
Because i'm curious, I'm going to poke at the code and see if I can find a suggested fix... and in the mean time, I might undo your hiding, so I can blacklist the scrap result -- pity that'll take one of the slots, but I guess it's worth it as a workaround, if I or you can't find a better fix. :)