Gifted Mutual funds show as external in Groww

I gifted mutual funds from my zerodha demat to wife’s Groww demat. However it shows as external and my wife cannot redeem it since it is marked external. Groww support isn’t helping much.

I transferred only 1 unit of PPFAS since I wanted to know the process. So this 1 unit is not important to me. But what is the issue? Also would it better if i use SOA instead of Demat for future gifting.