Pause Until will wait until one or more images are found.
Click requires a unique image. So I would guess that Keyboard Maestro is finding more than one image.
Turn on the Display option and see what image matches it is finding.
If there are multiple found images and you don’t care which one is clicked on, then you can potentially use the new FoundImage token in the click action.
Thank you! Unfortunately, KM for some reason interpreted things that weren’t the image as the image when I checked. I tried changing the slider a bit, but it became either too sensitive or not sensitive enough. I did fix it by just selecting a larger section (which included multiple buttons, but just had that one image at the center). Works now!
Small images, or grey images tend to match very poorly.
If you can constrain the search area to a smaller section of the screen, then Keyboard Maestro will use a more accurate (but slower) search which can improve things. But if possible, use a larger search image with more context for Keyboard Maestro to match.