I have a recurring monthly task that need sub-tasks. These sub-tasks need to be created on parent issue creation.
The rule is as follows:
This does not work. Only the scheduled task is created. Am I missing something in the rule?
The problem is most likely that you added the 'Create sub-task' action directly after the 'Create issue action'.
What you need is to add a 'Related issues' action after create and select 'Created issues', then add sub-tasks to those:
This may seem a bit weird, but the reason for this is that if the rule were triggered by an issue event (such as issue edited for example), then adding 'Create sub-tasks' on the top level should add sub-tasks to the issue that triggered the rule, not created issues. That's why you need to branch for created issues using the 'related issues' action.
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