In general the automation works with Issues created by Jira like Service request, but I did add a new Issue type - IT Help, same workflow, same screen, but it doesn't work with the new Issue type.
ITSM-131 - Issue type: Service request
ITSM-133 - Issue type: IT Help
What status was ITSM-133 in? Perhaps the transition wasn't avail from the step that it was in?
Resolved on both of them or it would not be possible to transition to closed with default automation.
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