Solution
The reason the IO Configuration step is not working as expected is because that the user need to have a code module to actually tell the instrument to function according to the customer's application. The working sequence should looks like this:
Before running the sequence, oscilloscope showing 0V:

After running the sequence, oscilloscope showing 3V, at this point, the Instrument Studio will go into Monitor mode:

Hence, it is necessary to include a code module to tell the instrument to work, i.e. sourcing of SMU.
The example of integrating TestStand with Instrument Studio can be found here: C:\Users\Public\Documents\National Instruments\TestStand version (bitness)\Examples\Interfacing with Hardware\InstrumentStudio .