I have a gen 1.
When I place it there it ignites. I assume pellets but have yet to try others. Only other time i had different pellets was what came with the APNS but I had no temp probe and was bowling so IDK if it flared up. I plan to try new pellets when I can afford to buy some.
Get a piece of aluminum or steel about the length of the AMNPS, and higher than your chip burner (when standing on the bars), and stand it up on the support bars, between the AMNPS and the Chip burner assembly.
See if that protects it from the heat from the heating element. I'm pretty sure that's what's been happening.
Nobody should have to put the AMNPS up above their meat.
Let me know how that works.