I'm having trouble with the Automating Time-based Actions with Workflow which is part of the Process Automation module. I have tried recreating this workflow in 3 new DE orgs with no luck. I still keep getting the same error. "Challenge not yet complete... here's what's wrong: 
Case escalation failed to execute correctly."

I'm sure it is something simple that I'm just overlooking but any input would be great. Below is a screen shot of the workflow rule I have created.

Is anyone encountering this error :

"Challenge not yet complete... here's what's wrong: 
The 'Set Case to Escalated' Workflow field update action was not found."

Not sure what's going wrong, but the action sure is there !