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If I do surface.create_entity{name="fast-transport-belt", position=game.player.selected.position, fast_replace=true} then a yellow belt item-on-ground is created. This behavior is expected.
Case 2:
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Same command, no yellow belt is created. Expected behavior: Yellow belt is created nearby.
This only seems to be a problem with belts. Other entities spill properly, even around and onto belts.