Item spawn device don't spawn item on new location

This almost sounds similar to an issue I was seeing with NavMesh when moving a prop:

The tl;dr was that whenever I’d move a prop, the NavMesh would remain in the original location. In your case it seems like some kind of location is being preserved for the device.

The only suboptimal workaround I’ve tried so far that worked is using a Cinematic Sequence Device to move my prop. Maybe you can try to move your item spawner device with a sequence to see if that works?

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