Saw this note in the Patch notes for 2.01 and 2.02, but I don’t believe it is functioning properly as I am still seeing these Items.
" * Starting in Torment Difficulty I, only Legendary and Unique items can drop. Any Normal, Magic, or Rare items that would have randomly dropped will instead be automatically converted into corresponding crafting materials."
Could have missed a newer note or something, but this feature seemed really great whenever it can work properly!