New hire in prepare for hire as a rehire and should be a transfer

We have an internal applicant that is in the Manage Hire process as a rehire, however, they should have been classified as a Transfer.

We are not able to change their action from Rehire to Transfer now that they are in the Manage Hire bucket. When the team attempted to process them thru the system, thinking they could just update the record once in Job Data, they get an error that the "Hire or Rehire action is valid only if the employee status is Terminated or Retired"

What do we need to do now to get this applicant hired into Job Data for this position as a transfer?