You have a very simple KM macro which should work without any issues.
I have a number of very similar macros.
So there must be some app or utility that is blocking text expansion, like 1Password does when it is open. I'd suggest that you startup your Mac in Safe Mode, where all startup software is prevented from launching. Then start the KM Engine, and try your macro. If it works, then you will need to start-up the other items in your startup list, one-by-one, until you find the one causing the issue.