Return PO for blocked stock not creating TO

I have a Return PO set up to pull from blocked stock. When I perform the MIGO_GR against the PO, the material document displays the WM details as storage type 916 (Return Order no PO) and movement type 601 (GI to delivery note). No TR gets created.

We don't use delivery notes and I need a TO. I have my blocked stock in a Quarantine storage type, so my goal would be that the picking search strategy would automatically look to that storage type to pull the blocked stock out of inventory.

Can somebody guide me through the config approach to make this happen?

Thanks, Vlad