Same problem here. One interesting fact: The toast item does NOT have a name (in inventory, when mouse-hovering over the items it shows the name, like "butter", "honey" etc., but the toast is not named.
Thus, when selecting the toast and attempting to give it to wallace, it does not say "give toast to wallace" or anything like it did when giving the honey or egg to wallace.
sounds to me like this could cause it. I hope this might help narrowing down the problem.