After the last update (beta 211169) torch skins aren't shown properly. They look all right while in the inventory, however, when hold by the character or put on the ground, the torch itself will be a simple torch, without the skin. Their smoke are still correct, as seen on the pictures. So it looks like the skin of the torch is saved properly, it just isn't shown on the torch well.
This affected already existing and newly crafted torches too.
I tested this with the Tragic Torch and Weatherbeaten Torch skins, but I guess it's the same case with the others as well.
Craft a torch with a skin.