When using a state machine action in a workflow, the workflow processes actions after the change state action, instead of changing states.
Reorganize the workflow so that change state actions occur as the last actions in the state machine.
This is expected behavior for a state machine. The state machine will continue to the end of its logical loop prior to trying to change states. At the end of the loop it evaluates to which state it should change. If there are multiple places with change states it will change to whatever state it was last set.