Custom order status for orders paid using wallet credit?

Hello, I need to change the order status for orders that were purchased using wallet credit. I made a new custom order status called ‘Payment received’ using this code:

function add_payment_received_to_order_statuses( $order_statuses ) {
$new_order_statuses = array();
foreach ( $order_statuses as $key => $status ) {
$new_order_statuses[ $key ] = $status;
if ( 'wc-on-hold' === $key ) {
$new_order_statuses['wc-payment-received'] = 'Payment received';
}
}
return $new_order_statuses;
}
add_action( 'init', 'register_payment_received_order_status' );
add_filter( 'wc_order_statuses', 'add_payment_received_to_order_statuses' );

I tried to follow this thread to change the order status but it did not seem to change anything, I still had to manually go into the order page and then change the order status. This was the code that I used:

add_action('woo_wallet_payment_processed', 'woo_wallet_payment_processed_callback');
if(!function_exists('woo_wallet_payment_processed_callback')){
    function woo_wallet_payment_processed_callback($order_id){
        $order = wc_get_order($order_id);
        $order->set_status('Payment received');
        $order->save();
    }
}

Other than that, I also tried to do so using this code:

add_filter( 'woocommerce_wallet_process_payment_order_status', 'change_wallet_order_status', 9999, 2 );
 
function change_wallet_order_status( $status, $order ) {
    return 'Payment received';
}

But similarly to the previous one, this didn’t seem to do anything. Any advice?