My character had 1 cut from a zombie. In a panic, I tried to cut up a flag with a hacksaw, but I cut it with my hacksaw still in my inventory and combined the hacksaw with the flag to cut them, but when I cut the flag, I did not see the rags drop on the ground, nor did I even see any rags in my inventory. I believe this is a bug though as when I cut just regular clothes with a hacksaw in my inventory by combining, it drops on the ground.

Take a hacksaw or any tool used for cutting that is in your inventory, combine the flag with the said tools, and cut it. The rags will not drop on the ground or even go in your inventory.

The expected result was supposed to have rags on the ground.