Automation to change cell which has drop-down values does not work

Hi all,

I'm using the automation function to synchronize 2 columns (see below).

Essentially I have a column on a sheet which I called "Project Status" which is referenced out to another sheet. If this sheet is populated with a status, it should trigger a change in a drop-down column next to it called "Current Status". I've configured the automation to work when "rows are changed or added". I will be also setting up a couple other automations which will sync "Project (On-Hold)", "Project (Complete)" and "Project Cancelled". In addition, I have tried changing the current status field to be restricted to 1 choice and keeping it unchecked as well.

Automation Config

Current Status should change when the Project Status is populated or changed (blue highlights the referenced column changes). Current Status field did not changed and stayed as "Backlog"

Current Status Field Config

Thank you for your help!