Symptoms
Using the "Get Subsite Reference" wizard in the workflow designer is not correctly creating a reference.
Diagnoses
Values set in "Relative URL" and "Subsite Relative URL" fields in the wizard were incorrect.
Resolution
Set "Relative URL" and "Subsite Relative URL" values correctly as per the example below:
https://mycompanyname.sharepoint.com/sites/mysitecollection/mysubsite
In this URL, "my subsite" is the Relative URL for the subsite.
The "Subsite Relative URL" is the part of the URL that denotes the parent site where the subsite lives.
Again, in the above URL, the "Subsite Relative URL" would be /sites/mysitecollection