I have also bug-logged, but just providing a log too, for elaboration reasons.
Quote:
>
i
You are carrying:
(Glowing) (Humming) a double-headed handaxe (superb)
[HP: 40%] [ME: 61%] [PE:100%]
>
drop hand
You drop a double-headed handaxe.
[HP: 40%] [ME: 61%] [PE:100%]
>
l
It is pitch black ...
You see glowing red eyes watching YOU!
[HP: 40%] [ME: 61%] [PE:100%]
>
get hand
You get a double-headed handaxe.
[HP: 40%] [ME: 61%] [PE:100%]
>
i
You are carrying:
(Glowing) (Humming) a double-headed handaxe (superb)
[HP: 40%] [ME: 61%] [PE:100%]
>
As far as I can remember, if you dropped a glowing item in a room, the room became iluminated. As you can see this doesn't happen now, and strangely enough, you can still pick up the glowing item, although you can't really see it.
Regarding the location, it was the wilderness west/southwest of Menegroth.