Development field shows only "Create branch" when integrating Jira cloud with Gitlab SaaS

Trying to integrate Jira cloud with Gitlab SaaS but the "Development" field seems to show only "Create branch" even after a branch has already been created on Gitlab by clicking on "Create branch" (branch has the correct name e.g. "<project_name>-<issue_number>-<issue_name>")

Followed the instructions at

• https://community.atlassian.com/t5/Jira-articles/How-to-connect-GitLab-to-your-Jira-Cloud-Instance/ba-p/1834450 and
• https://docs.gitlab.com/ee/integration/jira/configure.html

and expected to see something like

but am getting

even though referencing the Jira issue ID in Gitlab works as seen above where it has been referenced directly in a Gitlab MR (merge request) and a commit

Also, Jira transitions do not work i.e. "Closes <jira_issue_ID>" does not move the Jira issue to "Done" when Gitlab issues are closed or MRs are merged to default branch even though the transitions have been enabled as mentioned at https://docs.gitlab.com/ee/integration/jira/issues.html#automatic-issue-transitions

Does anyone have the same issue? Or is this by design?