To reduce the object handling code, Have an array (here called, ObjectsArray) that's full of item names, in the same order as the items are in the animation. Then, under Miningstuff, it would go ItemGroup = Mining --> Set ItemFrame to Objects.AnimationFrame and Set ItemName ObjectsArray.Objects.AnimationFrame
As for why the item isn't in the slot right; the crosshairs in the image editor lets you adjust where the object origin is. It should match up from item to item, but does not.