In the Jira Cloud new issue view, the dropdown for status transitions ordering logic is not impacted at all by the order of statuses in the status settings screen (Settings > Issues > Statuses).
The ordering logic is as follows:
- Always show transitions with the opsbar-sequence property first according to their opsbar-sequence value (lower values appear first);
- Then show remaining transitions ordered first by category (To Do, In Progress, Done);
- Within category order alphabetically by name of the status being transitioned to.
So, to change the transition order in the new issue view status dropdown, it is necessary to include the opsbar-sequence property in the workflow transition, lower values will appear first.
- From your project, go to project settings, then workflows;
- Select the workflow from the issue type you want to change and click on Edit under the Actions column;

- From the diagram or text mode, select the transition that you want to reorder and click on Properties, it can also be used on Global Transitions;

- In the transition properties screen, add the opsbar-sequence in the Property Key column, and the numerical value in the Property Value column and Add;

- Go back to the workflow screen and publish your draft workflow after you make the change to all the transitions needed.

Example before editing the transition:

Example after editing the transition:

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