Frequency Separation: Not Blurring, just turning it gray...

so here are the steps I applied for frequnecy seperation:

1. Make 2 duplicates of your image layer

    Lower image: blure

    Higher image: texture

2. Select the Low frequency layer and use Filter Gaussian Blur (I used 5.0)

3. Select the High frequency layer
    Go to menu Image > Apply Image
    Set the source layer to Low Frequency
    Set the blending mode to Subtract
   Set Scale to 2      *
   Set offset to 128  *
   Click OK

4. Change the blending mode of the high frequency layer to Linear Light

When I try to use the clone stamp on the image to correct, it just makes it gray, and doesn't blur. The photos attached show my setup, and then what happens when I try to correct.