I believe that's happening because you're disabling collision with wooden chests specifically, which makes squeak through not modify the collision box anymore. The game doesn't like that, because upgrading it into an iron chest would change the size of the entity. Try adding both the iron chest 42 and the steel chest 42 to the list, since that will make them all the same size. It's not the best solution, but it's the only solution right now, I'll see if I can make the setting better soon.