Odd, I can't seem to recreate this error, either with default settings or changing the setting to the maximum allowed value. There might be another mod affecting compatibility between these two?
EDIT: In fact, filled barrel recipes are supposed to blacklisted from being recycled (since you can literally just empty them in a chemical lab to get the fluid out), so the only way this error could occur, is if another mod is changing the subgroup of the barrel-filling recipe.
You can check this in-game by loading without Reverse Factory, and then checking in the factoripedia, what mods are affecting the sulfuric acid barrel recipe (though I believe this is just the first barrel in the list, and all barrel recipes are affected by the same mods)
