Alert Action Rule created to have incident create when it match the conditions define. However, no incident created while the alert seems match to condition define in alert action rule.
Alert Action rule condition value is case sensitive. Alert has source "ServiceWatch" while the alert action rule configured source to "servicewatch".
Alert action rule condition field's value is case sensitive.
Change the alert action rule source condition to match the Alert Source ie: "ServiceWatch" helps to resolve the issue.