I'm not running any mods, and it's placed inside the traveler's chest.
However, if the food is still in the Traveller's Chest when I go to long rest, I can't use it when deciding what to eat. The game doesn't treat it as if it's in my inventory because it's in the Traveler's Chest. I have to manually take it out of the chest to consume it.
This is 100% not the way my game is working, because I send all my heavy foodstuff to the traveller's chest.