Leads Workflow AutoRun fails due to Action Disabled

Trying to get an action to auto run on transtion into a workflow state, however on completion of the action ACU gives an error that the action is disabled.

the steps to reproduce

1. Config Leads (CR301000) Screen
2. In Standard inherited workflow
3. In the Open state
4. Set the action “CreateContact” Auto-Run Action field to True
5. in a new lead with status “New” click the “Open” action
6. The “Create Contact” dialog pops up, but on selecting “OK” the error message states that the “Open” action is disabled. 
7. After clearing the error the state has transitioned, however the contract was not created.

What am i doing wrong?

I have also tried to run the Auto-Run action at the “Sales-Accepted” state, however I got the same error.