So essentially I am trying to understand this is the situation:
Kitsune with Fox shape feat has the item Demon Talon equipped to a stump. Let's say both of their hands, so two Demon Talons. If this individual did this while in Kitsune form, then transformed into a fox via fox shape, would they retain use of the magic item while in fox form?
Under the Polymorph section it says,
When you cast a polymorph spell that changes you into a creature of the animal, dragon, elemental, magical beast, plant, or vermin type, all of your gear melds into your body. Items that provide constant bonuses and do not need to be activated continue to function while melded in this way (with the exception of armor and shield bonuses, which cease to function). Items that require activation cannot be used while you maintain that form. While in such a form, you cannot cast any spells that require material components (unless you have the Eschew Materials or Natural Spell feat), and can only cast spells with somatic or verbal components if the form you choose has the capability to make such movements or speak, such as a dragon. Other polymorph spells might be subject to this restriction as well, if they change you into a form that is unlike your original form (subject to GM discretion). If your new form does not cause your equipment to meld into your form, the equipment resizes to match your new size.
So would the item Demon Talon still work while in fox form?