Does this update (10/2) fix the issue where transferring an item (control click) an item to a full inventory results in a loss of that item?

Thanks for your work - and in response to the poster about video tutorials - they are crucial and must be viewed prior to  playing (and for me, viewed again while playing).

Yes, that bug should be fixed. The fix listed in the patch notes: "Fixed control+click not properly checking inventory space when transferring items." is the same bug and it should be fixed now.