Salem

Now its a minor detail, but it should be simple to fix/improve.
It'd be nice if you could swap what you have equipped with what is on your cursor, especially if it is a lit torch. I know its not much fuel to re-light, but its annoying that what is on my cursor isn't considered in my hand and I can't directly swap it with what the game considers in my hand.

I did search for this so I am sorry if someone else has mentioned it.
I realise it might be a feature not a bug, I'm just say, its frustrating.

Yeah, this has bugged me for a while. Nearly every time I light my torch inside the house on the stove, I forget to remove my weapon first, and end up having to remove it, then relight the torch to go outside to the ovens.

I think equipment replacement was works like this to prevent you from equipping a shovel when you're already holding an axe.

However, it shouldn't be difficult to just have it so that dragging tools to your equipment slot automatically pops the previous equipment into your inventory, or if your inventory is full, drops your pickaxe into the water.

This bugs me too. I believe it's possible to swap items in the inventory but not equipped items.
Sometimes realism is a pain in the bum.