Edit: [SOLVED] turns out it's just an incorrect message, I have full inventory when I tried crafting the campfire.
Additional: Dropping item is really hard, it doesn't work most of the time so I need to repeatedly drag the item out of my inventory.
Will be leaving the original post below for reference...
Kind of a blocker on me now, Campfire (and some other items) shows "Can't craft in Sanctum" even though I'm not in Sanctum.
Edit: I did have a message saying unstable connection and will be transported to Sanctum in few seconds. I tried restarting the game and made sure to craft Campfire again as soon as I'm on a server but the issue still occur.
Table is working