Thanks for the screenshots smartd.
This looks like a bug to me but are you willing to try something in your environment to see if it makes a difference?
Go to the Groups tab and edit the Test group. Change the time between escalation steps to 120 minutes (or more) so the Orion alerts remain in the Notified state for a couple of hours before automatically getting assigned. When a new Orion alert comes into AC then login as the user getting Notified and hit the Acknowledge button.
Does Orion update in this instance? Maybe it is the Auto-Assign that is broken?
Thanks again for sharing
Yes, the timeout was the issue. Thanks. Haven't tested acknowledges going back yet.