Last Touch Channel - Paid Search showing as Natural Search

My Last Touch Marketing Channel report is picking up appx. 20% of Paid Search under Natural Search.

I have setup utm_medium params to identify Paid Search traffic [utm_medium=cpc].

As you can see in below Workspace for Last Touch report, the breakdown containing cpc actually has a First Touch channel of Paid Search but still gets shown as Natural Search in Last Touch - even though it's Paid Search traffic.

Can anyone please help with identifying what needs to be changed in my Marketing Channel Processing Rules for the Last Touch report to show correctly?

Thanks.

The processing order for my rules has Paid Search well above Natural Search.

Processing rule for Paid Search - OR condition: utm_medium=cpc or matches Adobe's Paid Search detection

Processing rule for Natural Search / ALL condition: medium does not contain cpc, source does not contain google and referrer contains the main three search engines.