Placeholder quest item

I received a village quest to retrieve a “sanctified item” from a workshop. The sanctified item was in the inventory of the legendary merchant, but when I transferred it to my own inventory it just disappeared. (I was unable to complete the quest.) Screenshot attached of the item in the merchant’s trade inventory.

In case it matters, the village was in the Palladium Reef, and the quest-giver was a prism perch.