I'm having issues with the workbench. I can't craft anything new, it says the storage is full. Problem is I can't yet demolish things. I have a quest to build benches and a fountain. And I don't think I can get the red goo used to research more storage, until after that quest is done.

I have experienced similar issues when crafting bentos for the workers. However I fix that by emptying the bento work station. Annoying to do everytime I'm out of bentos but it works.
However I can't empty the workbench, or pack it down, so I'm not sure how to fix it myself.

Have I ruined it for myself ? do I have to start over and just remember to craft less ?
Anyone with a fix for it ?