This item itself is a container that gives the choice of an Apostate or Forsaken torch. This exotic torch is salvageable, but today I realized that it salvages into nothing.
If I get another one I’ll take a screenshot, but if anyone else gets one and doesn’t plan on using it I’d suggest throwing it in the forge instead of salvaging, as in that case at least you’ll get a return.
There are actually 10 different weapon containers that drop from Generosity’s Reward, and I would imagine this is probably an issue with all of them.