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Error: Attribute ManagerType in DirectSupervisorDEO is required

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We are swapping positions of two employees on the same date, Let's say Emp1 in Pos1 and Emp2 in Pos2. We enabled position overlapping in Pos2 and updated the Position on Emp1 to Pos2 now when we try to update position of Emp2 to Pos1 we get this error: Attribute ManagerType in DirectSupervisorDEO is required

I also checked that there are no Active Direct Reports of Emp2.

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