this also happened to me when crafting in inventory. Sometimes the crating queue stops like in the picture for seemingly no reason. I was crafting timber and planks

This happens when the internal crafting inventory is full. It's confusing for sure.

I have the same problem, but the queue is 4 items for me.

I noticed it is dependamt on recipe. You can queue up 4 Salads or Hodge Podges but only 3 Soups with Bread.

I have encountered this when baking Bread with Soup. I can bake upto six of other items.

20220416153700_1.jpg (599,131 bytes)   

20220416153700_1.jpg (599,131 bytes)   

There's definitely a follow up here. I just don't know if it's fixing the error message -- "not enough space to craft that" -- or if we should just remove the limit on the internal inventory altogether.

When I bake a Soup with Bread, and it completes, and remove the item, I can then put another Bake with Bread into the queue. Again, no more than 3 in queue.

I would remove the limit on the crafting inventory. It was added to prevent some storage exploit but it's a problem when the recipes change, as reported here, and it prevents mods with larger recipe limits unless the mod also alters the size of crafting inventories. I don't really see the "exploit" part of it being much of a problem.