I just noticed that the Alchemy Crafting stat does not increase when I was putting points in Alchemy. The odd thing is most of the time I was putting points in Alchemy, I was in Werediggle form. Also in addition, I am unable to craft any recipes using Alchemy. Edit: Scratch that, it seems to be a character creation bug which resets Alchemy stat to 0 like the Wand creation bug.
You lose all your crafting points when you take werediggle form. You gain them back as a human. Basically, no crafting as a werediggle.
Yeah I got the losing crafting points and regaining them back in human form bit, it was actually more of a "I started a character with Alchemy and he had no Alchemy craft stat".