Quote: "When developer mode is activated, i find the trashcan keeps moving away from the cursor if i try to drag the unwanted item back into the inventory."
Perhaps it's because I am tired, but I don't understand what you are trying to do here. Why are you dragging an unwanted item to a trash can?
If I'm understanding you correctly, I think you're talking about that trashcan icon that shows up after you've selected an object in the Level Objects list? Is this correct? If so, all that's indicating is you can click again, in the Level Objects area, to DISMISS the object BEFORE placing it in the view port. Doing so will "delete" it before placing it. That way, you don't have to place it and then delete it if you didn't want it to begin with.
So, let's say you have a loaf of bread in your Level Objects and you've clicked it to place it, then you decide you actually don't want to place it. You can then click again in a blank area under Level Objects (or even under Current Objects, etc.) and the entity will be dismissed so you won't have to place it.
Notice, your cursor gets the trashcan while over these areas. When over the view port it loses it because once you're there, you can place the object. If you decide you don't want to place the object, you can move the cursor back over to the left-side, the trashcan re-appears, and you can click to dismiss your selection, freeing you to select another object to place.
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