PAYMENT_METHOD_VERIFICATION_FAILED when migrating subscription payment methods from Stripe

Hi, I’m currently migration subscriptions from Recharge to another app and I’m having trouble migrating the Stripe subscriptions. I’ve followed this documentation and setup Stripe as a secondary payment provider and the following shop.features are now true:
eligibleForSubscriptionMigration: true
legacySubscriptionGatewayEnabled: true

The customerPaymentMethodRemoteCreate runs successfully and returns a CustomerPaymentMethod which I then use to update the subscription. However, the customer payment method’s instrument is always the ‘bogus’ gateway and it would be immediately revoked with the reason: PAYMENT_METHOD_VERIFICATION_FAILED

{
“id”: “bda59e46f6c6470b69fdd7769f812aff”,
“revokedAt”: “2025-11-07T09:07:50Z”,
“instrument”: {
“name”: “”,
“brand”: “bogus”,
“source”: “remote”,
“__typename”: “CustomerCreditCard”,
“expiryYear”: 1900,
“lastDigits”: “”,
“expiresSoon”: false,
“expiryMonth”: 1
},
“revokedReason”: “PAYMENT_METHOD_VERIFICATION_FAILED”
}

Why is this happening and how can I resolve it?