"Hide All Windows" action is not working

"Hide All Windows" action from the drop-down menu is not working. I tried to assign this action to many different touchpad gestures, but none of them work.

Input device: MacBook Trackpad

Device information:

  • Type of Mac: MacBook Air (13-inch, Early 2015)
  • macOS version: Catalina 10.15.3 (19D76)
  • BetterTouchTool version: 3.335 (1514)