I noticed the same thing so I clicked on it and dragged it over to the bench instead of using R2. Also make sure the armor or weapon your delving is fully repaired it won’t work if it’s broken or any durability is lost as it uses the durability in the crafting
The tedius version of inventory movement (moving the items using ‘X’) seems to work.
Haven’t had a chance to test the actual functionality properly yet as my clan is still short on Eldarium, but I believe the cost of a chance to produce a recipe is 20 bars (I threw 12 in thinking it’d match with the cost for crafting recipes learned in the vaults) and as @Neoskater420 has pointed out, it looks like the item needs full durability.