The rare message should only occur if the drop is from the drop tables. I can't see a Cane in the current drop tables so that is quite strange. We'll need to enable logging to debug the issue because the star value offset is definitely correct.
I assume that the Cane remained a cane when it was in your inventory?
I find this odd. As I found a Branch of Paku Paku after you turned this on, and a Hildebear Head and it said their names. However I also haven't found so much as a PD since. And that's after farming the first half of Lost Heat Sword for hours.
I was playing with my brother yesterday and twice we got the message that he picked up a special weapon, when actually it was just an unidentified Halbert both times. Worked fined with the other actual special weapons we found though.