I think the issue is here, which requires a fully mobilized Italy.
{
#NAME= DE 706 - Italy: Continue through the Gibraltar Strait? (From East to West) (AI - 0% Yes)
#POPUP=
#MESSAGE= Ammiraglio di Squadra %N%N Say %B(YES) if you would you like our ships to continue sailing through the Gibraltar Strait to the Atlantic.%N%N If not, then say %B(NO) and they will remain in their current position.
#IMAGE=
#SOUND= teletype_1.ogg, teletype_2.ogg
#FLAG= 1
#TYPE= 2
#AI= 0
#LEVEL= 0
; Set global variable condition to always trigger (dummy value)
#GV= 1[1,100]
#LINK= 0[0]
#COUNTRY_ID= 59
#TRIGGER= 100
#DISPLAY_ORDER= 0
#DECISION= 706
#MPP_UPDOWN= 0
#MPP_TURNS= 0
#MPP_TEXT=
#NOTES= This event represents the ability the Axis had to slip small numbers of ships through the Gibraltar Strait.%N%N However, sending units through the Strait is not without risk as they may end their turn adjacent to Gibraltar, making them vulnerable to enemy attack.
#NOTES_POSITION= 136,114
; Set AI acceptance % (AI will accept 0% of the time)
#AI_RESPONSE= 0
#AI_RESPONSE_POPUP=
#DATE= 1939/09/01
#TEXT_RGB= 0,0,0
#SHADOW_RGB= 0,0,0
; Gibraltar is in Allied hands
#ALIGNMENT_POSITION= 136,114 [2]
;Set National Morale Trigger (dummy value)
#NATIONAL_MORALE_TRIGGER= 0 [0]
; 1st Line - Italy(59) aligned with Axis and not surrendered
#VARIABLE_CONDITION= 59 [1] [100] [0]
; An Italian Naval Unit is in place to travel through the Strait
#CONDITION_POSITION= 139,113 [0,0] [1,1] [1] [59]
#CONDITION_POSITION= 139,114 [0,0] [1,1] [1] [59]
}