I checked it too Autotransmute sometimes looks like not working but it is doing correctly Such a display bug
@Jarcev what version are you playing with? I fixed a couple of display issues with auto-transmute in 1.8.3. Maybe there are still some left? Besides that, auto-transmute works recursively, in your example it depends what blue results from the white transmute. The option to cancel auto-transmute already exists, but the UI part is still missing (almost the hardest part for me).
Its sometimes not matching example I have transmuteed 3 blue items so 4 circles on the card window is showing 0 3/4 0 0 and if I transmuted 4 white items to 1 blue and it is autotransmuted so I just got 1 yellow item so circles must show 0 0 0 0 but still 0 3/4 0 0 and just saying speed mushroom's damage decrease doesnt stack