When creating a dataflow to sync data from a SQL databse into Dataverse, the Lookupfield of the destination table are not accepting the correctly configured alternate key.
The dataflow fails with an error message:
"0x8006088a: The key in the request URI is not valid for resource 'Microsoft.Dynamics.CRM.sdx_itemparents'."
The data sent to dataverse by the dataflow is: "sdx_Item@odata.bind": "/sdx_items(sdx_productcode='XX7281.60')" and the "sdx_item" table has an alternate key set to the "sdx_productcode" field:

Dataflow column mapping: (There happens to be 2 lookup fields to the same "Item" entity, as this table is setting up a "parent" relationship form Item -> Parent Item)

So it should perform the lookup to the record correctly, but is not working.
I have also checked that the Key is active (using Classic mode):

I have searched all Microsoft Documentation and the forums, and cannot find any reference to this error anywhere.
Has anyone else seen this error?
Any ideas why this lookup is not working?