Rework order issue

Hi Experts,

I am trying to run a rework process and got into error

Steps done are

1. Production order 1234 created & GR done for the order, for Finished material ABC

2. Inspection lot created and Quality usage decision done as rejected

3. Inspection Lot quantity moved to blocked stock

4. Rework order 5678 created in CO07, with the original production order 1234 as the settlement receiver

5. CO11N - Confirmation done for the rework order 5678

6. I am trying to issue the Finished material ABC to the rework order 5678, by taking the stock from Blocked stock in MIGO screen and getting the error as "Check combination of stock type and movement type". Movement type comes by default as 261 and stock type I manually selected as "Blocked stock". Should I issue Finished material ABC to the rework order only from unrestricted stock & not from blocked stock?

Please guide to proceed further.

Thanks

Sakthi