Default Cost Profile is not getting applied to new items defined

Summary

Items have to be manually associated with the cost profile even though the default cost profile has new item cost creation set to 'Auto'

Content

I just defined a new item in the product master, assigned to the inventory org, subinventories. I performed a miscellaneous receipt into a subinventory org at a set cost.  Then transfer the transactions to the Costing. Upon Querying I do not see the cost for the item that I just received.

The Default Cost Profile for the Cost Org has the New Item Profile Creation set to 'Auto'.

I had to manually update the item cost profile, transfer the transactions to costing, then create costing distributions, before I could use this item for my internal material transfer.