"Continues reporting to the current manager" in direct reports section and check box not checked

Summary:

We are facing issue in termination transaction where the approval notification should go to the line manager.

The previous manager of the employee is terminated and inactive in the system but still it shows the below error.

1. L2_IN_Termination rule is not to be picked but it is getting errored out in parallel rule that we created.
2. The previous line manager is terminated and inactive in the system. Still it is asking to assign a supervisor for the manager.

On checking we found that in the current line manager's direct reports section the checkbox is not checked and it shows