Folder Actions Setup is a restricted service and folder actions are not working

On a fresh Monterey install, when right-clicking on a folder and selecting

Actions Setup...

, I get the following warning: I click on

Service

, I can create my action via Automator etc. The problem is that the action never triggers and each time I'm clicking on the

Actions Setup...

I still get the same warning, wondering if the service is actually running, which would explain why the actions are not triggered. This may be linked to a file permission issue or a Privacy setting issue, one service not having Full Access to the hard drive. Is there at least a log somewhere telling me if it tried or not to run the action? Didn't find anything useful in the Console. Action is of course running fine in Automator.