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Please verify whether your Recon rule is Active...
Also, if the value in the key field is Case Sensitive... Make it Case-Insensitive
Then Create Recon Profile
Recon event is generated so issue can be with following-
1. Recon rule
2. Reconciliation action
3. Key field in reconciliation data
So check all above, once done again create recon profile and then test.
Go to Resource Object -> Reconciliation Rule -> check whther "No Matches Found is linked to None". OOTB it comes with xelsysadm.
After that create recon profile...and test.
It started to work after changing the "No Matches Found" response to None and creating a recon profile. Is this a know issue?
How does the response defined for "No Matches Found" condition affects the way the other rule condition (One Entity Match Found) works.