So, I started a new game and when I opened my inventory it was completely full of late(r) game items.
This is me preparing to fish out the sinkmouth key with the hook on a piece of line, while the stone on a piece of string with a hook (made from the aforementioned hook-line and a stone from the next chapter) sits right next to it in my inventory.
This is me after aquiring the stone and crafting a second stone on a piece of string with a hook.
I HAVE been having computer problems and I AM a loot goblin so this doesn't bother me in the slightest, but it did happen so I thought I'd mention it.
Also it somehow made the inventory more manageable?
Oh, it's gone... After the hot air balloon ride... I feel sad.