I've found the issue:
Currently the Land Dragon has 6 inventory slots (the Claws being placed in the last slot); The Perma-Item script defiantly does work, and it seems to always mount the item, it's just that Blockland doesn't increase the inventory size, unless you have
this add-on.
I'll probably reduce
Landy's the Land Dragon's inventory size back to 5 in the next update.
EDIT: Also Bithead9 is such a bithead and is now unbanned forever. C: