I have a Flaming Gavel of Truth with is a BoE 1-h Weapon. When I do best in bags, it does not recognize it as in my inventory (even though it shows in the left column crossed out. Clicking on the recomendation on the right, does not show it in the list and it is suggesting the Mallet of Zul’Farrak instead (ilvl 50!)
Which class and spec are you playing? Flaming Gavel of Truth is an intellect weapon which means it’s missing a main stat for specs that use strength or agility.
While it might still be better than your old weapon, it’s generally not a good idea to use a weapon without your main stat and thus AMR ignores those weapons.
Kelada’s Elucidation is a prime candidate for this when - by way of example - Demon Hunters have equipped it.
@yellowfive did say in a different thread that he may look for a way to relax some of the weighting for this, but I don’t think there was any implication that AMR would be set up to totally circumvent it.