Receiving error that the item is not assigned to the organization, but it is correctly assigned

Order management can't schedule the fulfillment line because item **** isn't associated with organization YYY. (DOO-2685272) Details: Go to the Product Information Management work area, open item **** for editing, then use the Associations tab to add and assign an organization. Next, go to the Setup and Maintenance work area and use the Collect Planning Data page to collect planning data. Next, go to the Plan Inputs work area and verify that promising collected the item for the organization. For details, see the Collect Planning Data for Order Management topic on Oracle Help Center.

The item is correctly assigned to the org, correctly assigned to a sourcing rule and ATP attributes are the same as other items that use the drop ship flow. We cannot progress the order in our orchestration, there doesnt appear to be a reason why this error is being thrown.