Yes it does, it even fixes the engram list and does so for other mods running with it, too. And if you only want the fixing logic without any stacking or weight reduction, then simply use this in your game.ini files for all your grid servers:

You don't have to add anything if you want the default settings.

Put this into your game.ini of all grid servers:

Either use the ServerGridEditor: http://prntscr.com/melwjl
Or add in your gus.ini file the line: ActiveMods=1629667379
Or via server start params: ?ActiveMods=1629667379

The system takes a while to initially go through all inventories to modify all items

Every 300 seconds the system will start to go through all inventories to store the current item quantity and other settings into its so called "CustomItemDatas" variable. After that the game will save it as normal to your main savegame file. This means if a server for example crashes or it got shut down before the CIS system could go through all items to save the last known state, it will restore the previously known state. You could mitigate this issue if you either put in this command as admin into the console directly or via RCon before you shutdown your server:

If you want to customize ItemSettings, then simply put in lines for each item you want to adjust into your game.ini of all grid servers. And yes each "ItemSetting=(...)" has to be its own line and has to be part of/below the tag [CustomItemStacks.Settings].

then normal stack sizes, weight and spoiltimes will kick in as soon as you perform a server update (to verify and correct all modified server classes). You can preserve your items in resource and ammo boxes. If you do so on a ship and the weight reverts to vanilla it might sink your ship. For a save removal of this mod simply perform in the admin console or via RCon (since you have to do so for every grid server):
If is also possible to use a game.ini setting for that if you don't want to put in that command for each grid and want to ensure that settings are definitely reverted:

Then use these settings:

They are required for internal system use, due to how the grid server works and that most of unofficial server have several grid servers running from the same source files/installation. Without the Origin values it would destroy the underlying item classes.

Simply add an ItemSetting line for that item type to your game.ini

That's very unlikely, since this mod does not exchange the original item, it simply adjusts 3 variables for MaxQuantity, BaseWeight and BaseSpoiltime. This means it is not possible that this caused the item to no longer function in the base game.

Yes it is, as you can see in the thumbnail picture -> the green puzzle piece. It does not remap any vanilla item, it all stays original.