Photoshop Droplets not working in Automator

Hello everyone,

I'm having hard time getting Photoshop Droplets to work with Automator in OS Ventura 13.0.

I have a droplet that adds a watermark and a QR code to my photos. The droplet works when i drop an image in, but as soon as I make an automated task the Automator just opens the droplet as an app and will not run the action on the photos.

The Automator is set up like this:

Folder action receives files from my specified folder that I save the photos to

Open Finder Items is set to the Photoshop droplet that has a file extension ".app".

I have already discovered that in default the droplets are recognised as "damaged" by the Finder but I've already made the "right-click-and-open" workaround for that.

What am I missing here? Am I not using the Automator correctly or is it the Ventura?

I appreciate your help,

Tanel