Is <entity> (sub)type of <> doesn't work properly

Hi there,
I've coded this little procedure in MCreator 2023.2:

Event trigger - triggered by external call or when (global trigger): On loaded entity tick update
if(Is Event/target (sub)type of Item)
do{Execute command /"say found item" at x:x y:y z:z}

When I drop an item, nothing happens. I tried it with (sub)type of cat and I got messages when I spawned a cat. Do you know what I'm doing wrong? If the problem is that I used "On loaded entity tick update" as the trigger, then I have another question. I wanted to combine two items when they are on the ground and this was my idea of how to start with it. How else would you do it?

Thanks
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