Unable to add OSP item in the Standard operations

We are facing issue with adding OSP item to the standard operation of supplier type. The item is not coming in the list of values as per the below screenshot. I have checked the item configuration and it is configured as expected for OSP item type.

I was able to add the OSP item to the standard operations before the redwood theme update and I’m facing the issue in adding the item after updating to the redwood theme.

Appreciate any suggestions for this issue. Thank you.