New Harvest Recipe not working on Fractured(?) items

This concerns the damage type swap recipe - returns a "There are no valid Mods for this craft on this item" error.
I am not entirely certain if this is specifically fractured items, or if something else ticks it off, but i have used this recipe on a weapon previously and it worked as intended.

Actually, this seems to not work when used with the highest tier essence mod, the item being fractured is not the culprit, as the damage mod doesn't have a tier, it just says "Essences".

This makes sense practically and economically, but is it intended? Perhaps.