Adding text to Item Creation Mapping defaulting to grey status columns

Hello, I have set up an automation to create an item in another board whenever a certain logic is met.

Here is the item creation mapping that I have set up:

However, when I look at the item in the other board the Status columns are automatically defaulted to the greyed out area:

The status columns in the other board have values set up for both mappings, so it should appear as “New” and “Processing” rather than “Complete” and “Other”

I have tried work arounds like creating dedicated status columns in the original boards to hold the “New” and “Processing” values to autofill within the mapping (Instead of using just text), but it did not work.

Is this some sort of bug? or why is everything defaulting to these values?