Change status of split orders not working

Hi

When splitting an order, if “Splitted order(s) status” is set as “Default” then the new order (child order) has the same Order Status as the parent. However, if I set “Splitted order(s) status” to anything else, such as “on-hold”, the Order Status is actually changed to “Pending payment”.

Here is a video of what is happening: https://www.loom.com/share/7c16f795d886458a9f9ee492f840ef58

Please can you tell me if I am doing something wrong, or advise on how I can set the status of the child order to On Hold?

Thanks
Dom