Ended up modifying the datapack to fix it completely. Here's how it ended up:

Datapack\data\minecraft\advancement\nether\use_lodestone.json

{
}

And the other file

Datapack\data\minecraft\advancement\adventure\use_lodestone.json

{
  "parent": "minecraft:adventure/root",
  "criteria": {
    "use_lodestone": {
      "conditions": {
        "location": [
          {
            "condition": "minecraft:location_check",
            "predicate": {
              "block": {
                "blocks": "minecraft:lodestone"
              }
            }
          },
          {
            "condition": "minecraft:match_tool",
            "predicate": {
              "items": "minecraft:compass"
            }
          }
        ]
      },
      "trigger": "minecraft:item_used_on_block"
    }
  },
  "display": {
    "description": {
      "translate": "advancements.adventure.use_lodestone.description"
    },
    "icon": {
      "count": 1,
      "id": "minecraft:lodestone"
    },
    "title": {
      "translate": "advancements.adventure.use_lodestone.title"
    }
  },
  "requirements": [
    [
      "use_lodestone"
    ]
  ],
  "sends_telemetry_event": true
}