hi, using odoo 13 ce with inventory warehouse as 
3 step receive
3 step deliver
2 step manufacture ( pick components and then manufacture )

HISTORY: we are MTO and wanna be MTS stage.
previously, we tried 3 step receive and 3 step send and 1 step manufacturing.

it is good, but small problem, is MO (Generated from sale) auto reserve material (components) from stock, which we wanted to avoid.

PROBLEM: we simply switched WH to 2 step manufacturing and it showed and gives us pick components (which is super awesome) except, giving practical errors.

i.e in image below, it is pretty clear, component is in stock (location, just checked after creating image as well). 

Q. why internal transfer 5 and 6 are being generated ?? plus they are waiting for what??
Q. even if component need wasn't fulfilled by stock (internal location), rule was buy and PO should get created and moves should be referring to that PO.??

Mainly, my concern is to avoid creating extra transfers...
huge thanks in advance for any / all ideas / psudo steps guidance. , regards, haseeb

Edit After Actual Answer from Jaideep, helped me a lot.
Below is exactly what i had tried / confirmed (just because this might help someone some day.)