Could you check the event that the workflow fires for the transition from "Open" to "In Progress"? I'm not sure it is an "issue updated" event, I suspect it is "work started"
It is not the "work started" event. However I notice that the workflow transition has a fire a Generic Event post function, so I think that is it.
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Ah, I was guessing that you were on the standard Jira workflow which fires "work started". I was looking at the right thing though :-) When you add your own transitions, the default event added automatically is "generic". So just check the notification for "generic" is set up correctly, or change the event to a more appropriate one.
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