Hi Jerret,
I had run the same scenario as per attached image by you and I get the result with -ve variance. System shows me the auto select button enabled and when make to +ve variance it disabled it.
your InWhs qty is 591 and put counted qty as 590 and then try again.
Do not duplicate just try to create another with counted qty as 590 (that is less than In whs qty)
Thanks,
Harshal