From the GPO and SPO config we can know that the GPO pin is configured to Open-Drain Low drive mode and you want the GPO pin keeps low state in idle and send out a 20ms high pulse when sensor state changes. Please note that an external pulled up resister should be placed for GPO pin when you choose Open-Drain Low drive mode, or it cannot output high. If you don't have an external pull-up resister on GPO pin, please change GPO drive mode to Strong.
The output line currently does have an external pull up resistor with a value of 5k ohms. Also, I have tried taking that resistor off and changing the configs to the GPO strong drive mode, and that did not fix the problem either.
That was a good idea though.