Catalog Items and Automation Rules Conflicting

Hello!  We seem to have a Service Catalog and Automation Rule that conflict and looking for advice on how to fix it for proper ticket routing.  The form defaults to being assigned to our default group "IT-Service Desk" and the first step of the process is to set the State of the ticket to "Awaiting Input" for requestor's manager's approval.

Once submitted, I see in our queue that the ticket initially shows as "New" but immediately changes its state to "Awaiting Approval" as it should.  However, immediately after that, an Automation Rule that assigns most of our tickets to a Round Robin queue is overriding this state and re-assigning the ticket.

The Automation rule is setup as below:

It seems that since the Automation Rule applies to a state of "New", that it is still running despite the fact the Catalog Item is first changing the ticket state to "Awaiting Approval" which does not match the criteria of the rule.  What am I missing and how can we get this catalog item to stay in our default IT-Service Desk queue in the Awaiting Approval state instead of the automation rule taking over and pre-maturely auto assigning tickets out?  If I remove the "New" state from the automation rule, the catalog item works great, but then no ticket will hit the automation rule as all tickets default their state to New when first entered.

Thanks for any suggestions!