Shortcut Automation fails to monitor a folder

Shortcut Automation doesn't work on monitoring the folder

I have setup the following automation:

the automation is relatively simple, it gets notified when the file comes to the Downloads folder and moves the content to the correct folder:

I am running Tahoe 26.1 (25B78), I also tried a simple shortcut to open Notes app if the file comes to the folder and it is not working correctly.

Any help would be welcome,

Thanks