Performance Goals approval rules are not working as expected

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Hi Experts,

We have below requirement with Performance Goals approvals.

1. All goals added by Employees will follow Manager hierarchy.

2. If the Employee is reporting to CEO, then the approval should go to an Application Role.

For the condition #2, I have created one level approval based on Application role. But still, the second level approval is routing to Manager.

The setup information and the application behavior is explained in the attached document. What mistake am I doing here?

Thanks in advance,

Pooja

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