Not able to interrupt form - rule not picked up


I am trying to get some inputs from the end user using forms. The happy path works fine when collecting the inputs and populating the slots. But for the unhappy path, even though rasa.core.policies.memoization identifies the next action as defined in the story, rasa.core.processor is picking up the form with confidence 1 and executing it - asking the next slot. It is neither picking up the next action from the unhappy path story or the rule.

Below are the stories, rules and config -

Stories -

Rule -


Config.yml -