Media manager Conoslodate Project Not Working

Hi,

I'm having trouble consolidating projects with the behavior and output not as expected. I would like to know if I am using the tool incorrectly, or if this is a bug - any suggestions greatly appreciated

Expectation: I would like Project Manager to take just the clips used in one sequence and export the clips to new files so I can discard the very large portions of the original media which weren't used. PP reports the expected output will be <40GB -  I have seen PP work like this before for consolidation, but it is not working now.

Result: PP is transcoding the full original media, not just the clips required.  resulting folder size 185GB

Here are my Project Manager settings:

I have tried this process on various projects, importing the required sequence to a new project, deleting media cache files and two versions of PP - the latest available from 2022 and 2023

Any suggestions of why this is failing or a workaround would be appreciated