When trying to ignite a fire using a hand drill kit while either the kit or the fuel is damp (possibly an issue for other wetness levels, have not tested myself), the "Ignite" prompt still shows up. When attempting to ignite, the character starts the animation for about 0.3 seconds (never arrives at the part of the animation that shows a progress circle) before cancelling. This issue does not exist with tools like matches or lighters (as far as I can tell). I found out that this issue exists with campfires and fireplaces, but I have not tested this with other fire sources, like torches or barrels.
Side note: some sort of notification for why igniting a fire is impossible (fuel too wet, too close to building, etc.) would be a nice addition.