Incorrect team assignment of work items in an organization

This warning generally occurs when the area path of the child work item is different with that of the parent work item, and the area path of the child work item is not owned by the current selected team.

You can check with the steps below:

1. Navigate to Project Settings > Teams, check if some members had add other teams in the project. When creating a new team in the project, generally a new area path will be created for this team by default.

2. Navigate to Project Settings > Project configuration > Areas, check if some members had added other area paths in the project.

3. Navigate to Project Settings > Team configuration > [Select your team] > Templates, check if some members had set some templates for the work item types in the project. The templates can allow users to set the default values that will be pre-populated into the specified fields when creating a new work item. Check if the templates will assign the new work item to an area path that is not owned by your team.

4. Open the details page of the child work item, navigate to the History tab to see if any member had changed the area path of the work item recently.

5. You also can navigate to Organization Settings > Auditing, check who had add new teams and area paths in the project recently.

UPDATE:

When assigning an area path to a team, if this area path has child area paths and you want the child area paths also are assigned to the team, you should enable the option "Include sub areas".

To enable the option "Include sub areas", navigate to Project Settings > Team configuration > [Select your team] > Areas:

1. If an area path has been added to current team.
2. When adding an area path to current team.