OK. This should be handled upsteam if possible.
FD on leave currently from active development. But I've already reported this here. https://forum.minetest.net/viewtopic.php?p=375404#p375404
We can take a stab at fixing this ourselves. Not sure how it could be handled because I haven't ever looked at the code of this mod yet. But I assume that on death, the item could be removed. Then mark some temp variable to indicate they owned a death compass. On respawn, give a death compass and reset the variable.
I will try when I have time. Sorry for not responding yesterday I came home from work and slept all night and all morning to catch up on sleep i was missing.