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Looks to me like they are working.
If your using permanent watermarking which it looks you need to set watermark permissions in edit categories for each cat as yes imagemagick uses a gif watermark which you have and that does a permanent watermark.
If you want to use an overlay image then you need to turn off permanent watermarking and fill out the overlay watermark path which needs to be a png watermark and turn on the watermark.php script. GD2 which is on most peoples servers does on the fly watermarking. That does not mean that you need to switch your image processor away from imagemagick.