Data Transfer Modifier not working as well as Expected

Hey all. So I’m delving a bit into the data transfer modifier and I’m having a tough time understanding what I’m doing wrong. From what I understand this modifier should make it easier to blend two unconnected objects together, but whenever I use it it just doesn’t look as smooth or I only partially get a smooth transition. Am I missing a step? What am I doing wrong?

Different photos attached to show modifiers.

This one does the same thing. It looks a bit better in solid view, but not in rendered view.

These are the tutorials I’m watching if that helps too.

https://youtube.com/shorts/iA-PdqadlME?si=as2vUTDc0ZUKP_xm

https://youtu.be/x9Xj98PW6uk

sdfsd.blend (173.9 KB)

The attached image does not show the cause.