Movement request not generated for Work order reserved material during pick release

Inv Org Configuration:

We have an Inv org enabled for WMS, meaning Integrated system type is WMS & integrate manufacturing with WMS is enabled in Manage Inventory Org Parameters setup in General tab.

Sub Inv configuration:

The work order components source & destination sub inv are enabled for checkbox 'Use subinventory for manufacturing and maintenance integration with WMS' in Manage Sub inv setup. Both the Subinv are enabled for reservations & Active material status assigned.

Scenario:

Created a Work order WO1, for FG1 which has component COMP1. Reserved the material manually against this WO1 for COMP1 having lot number as LOT1 with detailed reservations. ( COMP1 is lot controlled item)