Alright, that took a bit more effort than I feel it was worth, but this error should be resolved as of v6.0.3
The game should load up to the menu, then if you want to recycle things like that flame droid (or certain items in vanilla, listed in the "dense recipes" section of the FAQ), then you will need to disable the ingredient safety toggle. These items will then become recyclable, but any excess ingredients larger than their stack size will be lost.
In the case of this flame droid, you will only get 1 light armor back, not the 2 that you put into the thing. If you keep the ingredient safety toggled enabled, then these items will simply not be accepted into the reverse factory (game should say, "cannot be smelted")