Used license field is not getting updated in LMA

Question

I want to track the used licenses in LMA and I believe that is handled by LMA itself. But somehow my Used Licenses field is not getting updated in LMA. Now, as per Salesforce documentation this field remains black in the following two cases.

1. A customer uninstalled the package.
2. Licensed Seats is set to Site License.

I have associated the package and LMA under the salesforce partner portal and set the default license as well i.e. Active, 2 Seats but still I do not see the used license field updated.

Screenshot of partner portal where package and LMA gets associated

Now, whenever I try to install the managed package in the client's environment to verify whether the package is getting installed based on the configured license or not, all I see is the package is getting installed with the default setting set to Site License rather than Active, 2 Seats

Screenshot of LMA record created after the package gets installed on the client's machine

I do not see the Manage License option in the client's environment where the package is installed

Answer 1

If you install a package in a sandbox (which it looks you are doing based on screenshot), it will default to Site License regardless of the settings in the Partner Portal.

If you want to test it in a 'Production' like environment, I would create a Partner Test Org using the Environment Hub, and install it there - that should more accurately mimic a Production Install