How to replicate REPLICA object to a destination bucket?

Hi, I am trying to replicate objects that where replicated from a different bucket to another new bucket. I know that I can replicate to multiple buckets from one source bucket. But can this be done like a chain relication?

I have done some research and I have only found this AWS documentation https://docs.aws.amazon.com/AmazonS3/latest/userguide/setting-repl-config-perm-overview.html#receiving-replicated-objects. However, it does not work.

My Scenario

I have Bucket-1, Bucket-2 and Bucket-3.

Bucket-1 is in a different AWS Account. The others are in the same account but different Regions.

When uploading an object to Bucket-1, it gets replicated to Bucket-2 correctly.

I've created the Replication rule on Bucket-2 to replicate to Bucket-3 and it works for direct uploads to this bucket. However, replicated objects does not get replicated to Bucket-3.

I've followed the steps listed in the linked document, which states to add the following generated policy to the destination Bucket Policy (Bucket-3)

{
    "Sid": "S3PolicyStmt-DO-NOT-MODIFY",
    "Effect": "Allow",
    "Principal": {
        "AWS": "arn:aws:iam::AWS-ACCOUNT:root"
    },
    "Action": [
        "s3:GetBucketVersioning",
        "s3:PutBucketVersioning",
        "s3:ReplicateObject",
        "s3:ReplicateDelete"
    ],
    "Resource": [
        "arn:aws:s3:::Bucket-3",
        "arn:aws:s3:::Bucket-3/*"
    ]
}