Got it! The game was bugged after exiting and restarting a whole lot of new crafting options are available. This bug may have been related to progressing with building some essential items (I was using a found furnace and blacksmith). Rebuilding all the items in the tech-tree didn't help but restarting did. This one would be good to know for other players and devs
Ok so it seems I can't make nails either so I'm guessing there is something undiscovered? I've been playing for about 6 hours and I think there is nothing left on this yland to discover. Maybe something essential has spawned underground\somewhere inaccessible?
I seem to be stuck unable to make an iron saw. Are there any prerequisites? I have a hammer, iron, sticks etc.. Do I need to discover something first? I've been all over the starter Island twice.