Our intent is to send email to the agent only when the ticket gets to a certain state (Action Required is a new state we created). I changed the existing State Change (Sent to Agent) template and checked this state, chose all the ticket types and all the priorities. Auto-reply option is chosen as State change (sent to agent) and this is the only template that is enabled.
Outgoing mailserver is configured properly as we get messages when notes are added.
I feel like I am missing something obvious. Any help is appreciated!!!