Automatic Order Status Does Not Change
Check the selected target status
Open Order Tracking → Settings → Order behaviour and verify that the setting is not Do not change order status.
New tracking only
The automatic status action runs when a new tracking number is added. Editing an existing tracking entry does not trigger it.
Custom status
If using Custom status, make sure the custom status name and stable slug are configured.
CSV
CSV import applies the automatic status only when at least one new tracking entry is added to the order.