It's just a case of an IMM being a needless dick. Outfitting for bread has been done since outfit came in, most IMMs don't care, there is no rule against it, and it's been rehashed multiple times with no change to outfit so it clearly isn't a problem.
Dwarf forgecraft is in the same boat.
IMMs that punish players for thinking of a different way to practice something or even using a skill or item are sort of jerks. As long as it isn't game breaking and as long as it is reported if it's a clear bug. Otherwise kudos to the inventive player that discovers alternate uses for things.
Although I'm pretty sure I'm responsible for the most code changes where something 'isn't working as intended'.