Status Reason Transition keeps displaying error

I obviously don't understand how the Status Reason Transitions works.  Here is my scenario:

1. Active
   • Intake
   • Evaluate
   • Ongoing
2. Resolved
   
   • Closed
   • Transferred Out
   • No Benefits/Services
   • Benefits/Services Expired
3. Cancelled
   
   • Merged

My Transitions look like this:

And on trying to save that configuration I get this error and cannot find a way around it: