Local sourcing rule is overridden by the Global sourcing rule, what could be the reason?

Local sourcing rule of "Make at Organization-A" is assigned at Category-Organization level for an Item-A .

Global sourcing rule of "Transfer from" is assigned at Global level.

Planning is not considering the local sourcing rule for Item-A, instead it is considering the global sourcing rule and creating a planned order with source as specified in the global sourcing rule.

I checked other items belonging to the same item category and they don't have this problem. What could be the issue here?