Simple Conditional Assignment not working

Simple Conditional Assignment not working

I'm just testing what we can do with Conditional Assignment, and even setting up something simple isn't working.

I've created a Zoho One group called "Ex-Emmployees" and set the conditions as :

IF Group.Role is not "Moderator"
Application Setting
User
Role - Inactive
Profile - Inactive

I have the role and permission set up in the app and it works manually, however when I add a test user to the group their role/profile don't change in the app. Even when I have ticked "Overwrite the roles assigned manually to Users"

What have I done wrong ?