SAP default Base Administration template synchronization project error Inserting duplicates even though object exist.

Dear fellow experts, I hope everyone is safe and healthy.

I'm seeing a very strange behavior and I was hoping that someone can point me in the right direction.

We have configured a SAP CUA synchronization project in read only mode using the default base administration template. When I re-execute the synchronization it is trying to insert already imported objects (for company and groups). I've made sure that the respective workflow does nothing if no changes are there. Screenshot below for reference. However, it still detects it as new objects and tries to insert all 99 groups in OneIM database even though they exist in OneIM and Target System,

I've also cross verified that the object matching rules are resolving and i can see that the values match respectively.

Any pointers?

Version: 8.1


Snippet of Synchronization log:
Workflow process for Groups: