Checklist is not allocated automatically

Checklist is not allocated automatically whenever a pending worker is added or when a employee is hired/rehired. But when manually allocating the checklist, it gets assigned.

The Pending worker journey is created in the Enterprise Onboarding Category with 'Add Pending Worker' action and the New Hire and Rehire checklist are created in the 'On Boarding' Category with 'Hire' and 'Rehire an Employee' respectively.

All the checklists are to be assigned when the record is created.

Am I missing something here?

P.S: The same configuration seems to work fine in a different instance though.