How to resolve error: "The serial numbers on a transfer order receipt must have been fulfilled"?

Hello Experts,

I am getting an error on receiving serial numbered transfer orders which i would appreciate assistance on.

Here is my scenario:

1) I have serial numbered item in stock.

2) I create a transfer order to a different location. I assign the serial number under inventory details.

3) I create an item fulfilment for the said item and save successfully.

4) On the transfer order, i click on receive and confirm the serial number . upon clicking on save, i get the error below:

The serial numbers on a transfer order receipt must have been fulfilled

What is the issue here?

I have checked the following: