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Supervisory hierarchy not working in contract management

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Summary: Hello, we have a requirement where we are creating the supervisory based approvals in the contract management. System is not allowing us to do so we are facing the below error while setting up the same. Please find the below screenshot for your reference.

Please let us know any solution on the same.

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Version (include the version you are using, if applicable): 23B

Code Snippet (add any code snippets that support your topic, if applicable):

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