So, I noticed on and off, when I try to give a gift, the npc takes it BUT doesn't acknowledge it. And I lose the item and gain nothing from the npc. For now, I'm saving before giving gifts and reload to try again. When not reloading, I have to exit conversation I noticed and then give a gift again for the npc to acknowledge the gift.
Just letting everyone especially developers aware. I don't know any triggers for it. Just something I noticed. And id figured I'd put it here to of what I do for anyone experiencing the issue.