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Unable to assign equipment to a shipment after driver assignment

We have a simple workflow requirement. Create Shipment from Order Release and assign it to the driver directly. The driver physically decides which container to load the shipment and then comes back in OTM to select the equipment. We are able to assign equipment type and when we try to assign equipment group via Optimize Equipment Assignments we run into this error :

The driver retained SEquipment [] from previous shipment PUBLIC.12345 must have equipment type assigned before this SEquipment {currSEquipmentGid=null} can be assigned. If the retained SEquipment is freight, the equipment instance must be assigned. (cureSEquipmentGid)

The Previous Shipment is ENROUTE COMPLETED with correct equipment group, type, equipment assigned and Driver has completed the journey and returned home.

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