Requester reply to a closed ticket does not re-open or create new

I have tried two different settings for service desk and neither are working in how it handles responses to closed requests. Initially I setup service desk to always create a new request when a requester replied to a close request. Unfortunately it never did create a new request and the technicians were missing the responses as they look at only open status requests.

I changed the setting to reopen the existing request if the requester responds within 7 days or after that time create new. We tested this out and found service desk doesn't re-open nor does it create a new when either condition is met.

Can you explain why this functionality isn't working or if I'm missing something in how it should be setup?

Thank you,

Erick G.