I still can't get it to work. I know I'm super close and I tried to copy your script exactly to start. I can get it to where they both paste into the object but if I turn on any blend mode they don't show up in the paste. I've tried switching the blend effects on both and switching which get pasted but it doesn't seem to work. The one difference I can see from your example to mine is in the editor, when you move the C icon it doesn't show up unless it is over the texture. Whereas mine shows up everywhere.
I'm linking my project because at this point I'm really puzzled. The notable script is at the bottom of the event sheet and the objects are on the left of the player character. The layer is "UnderWaterLayerFish"
drive.google.com/drive/folders/1GNbuqghkWbJAHUvivqSbpHmHh_eyChZ9