The mod responsible for this is the "torch tools" mod. I report this mod because of a different bug the other day. Since then i have found the following as also bugs. 1. If you right click a tool with any type of open-able inventor ie Lunch box or backpack. your client crashes. 2. If you try to re-size your claim with a place-able block your client will get an error and will not be able to extend and/or you will crash and get a server error. I am sure there are more, but i just woke up and this is all i can remember. When i find more i will post. On a side note: This mod is redundent, we have Battle Gear 2, which allows you to hold a tool and place a torch/block. Personally i wouldnt mind if Torch Tools was removed from the server.
Testing it. its the only mod that allows you to do this. Its the placing / right clicking of the item next to the tool thats causing issues-