PayPal IPN, "Processing", and transaction type

I have many gravity forms on my site, which all take payments using PayPal. Works perfectly except for one form, in which the IPN isn’t getting passed back. Every entry shows “processing” on payment status. All other forms do not have this issue.

The only difference between the forms is the “Transaction Type”. The problematic form is “donation” whereas all others are “products and services”. What does this actually mean in practice? GF official documentation doesn’t explain the difference as far as I can see?

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