The Cloudinary automation requires a modification to the transformation URL to function properly. Here's an example for your reference:
This is an example of the transformation URL provided by Cloudinary.
https://res.cloudinary.com/xxxxxxxxx/image/upload/cld-sample.jpg
When saving it to the automation's configuration, you have to modify it to:
https://res.cloudinary.com/xxxxxxxxx/image/upload/sample.png