User given EDIT permission on item trough workflow can't edit this item

Question

In Sharepoint Online we have a list with items that have Item-level permissions set like this

When the user sets a manager of this item we need to make this item editable to selected manager. I'm doing this using Sharepoint Designer Workflow (2010 with impersonation step) by adding EDIT permission to selected manager. But even if the user is visible on permissions list with correctly set permissions he can't edit this Item. We get Access denied. You do not have permission to perform this action or access this resource. error.

Am I missing something here?

Answer 1

Per my test, you need to set Item-level permissions like this:

Answer 2

The Contribute and Edit permission levels (role definitions) are not sufficient to bypass the Write Security setting. The Design role should contain the necessary base permissions (don't remember whether Approve Items or Cancel Checkout).