dropping

Not sure if this is a bug or a feature! I was on level 20 of the mines doing remixed rewards and after emptying the reward chest (I got a wooden club), I clicked it to remove the chest like usual and it became a House Plant! It was like when you break a chest and it becomes a small chest, but...

PLEASE HELP 😭 My tools keep randomly getting dropped and some are never recovered in the lost & found box! I have lost my axe, hoe, pickaxe, skythe, and watering can while just playing, only for them to reappear UN upgraded in lost & found the next day. I didn't die, didn't trash them...