Work definition was collected but was not defaulted in the planned order

Item is Make item, having a Make at sourcing rule.

The planned order created for the item is not showing the associated work definition. But when I click on the dropdown next to work definition, I can see WD listed there.

Additionally, source organization is shown as a completely different organization and we don't have any transfer from sourcing from that organization.

Any ideas on why the plan is not automatically fetching the WD.