Welcome back to the forum!
Firstly, I recommend using KMLink rather than the stock Elgato plugin. The only exception is when you want to dynamically set the button icons from Keyboard Maestro. There are numerous advantages, which will become apparent once you start using it.
I can't see anything wrong with your setup from the screenshots you've posted, although I'm not sure why you're using Keyboard Maestro at all when the Stream Deck can trigger hotkeys natively.
If there's a reason you do want to use Keyboard Maestro for this, you might like to look at this thread about navigating Spaces, which is pretty comprehensive: