When the catalog task state is set to closed complete the workflow activity is considering both the conditions available in for the catalog task i.e. cosed complete and closed canceled.
Both the outputs of the catalog task activity have the same conditions.
Catalog task "Asset Mgmt Fulfillment" has two outputs "closed complete" and "closed canceled" but both the outputs have the same conditions "activity.result==3".
When the state is set to "closed complete" the activity result is 3 and both the conditions are satisfied and the workflow proceeded further with the workflow in both directions.
Changing the condition for output "closed canceled" from "activity.result==3" to "activity.result==4" will fix the issue.