Modelbuilder: Inline variable %Workspace% not working with Workspace Iterator

I have 30 gdbs with identically named features in different geographic zones. I'm trying to run the same tasks on each by iterating through each gdb in a folder. However, when I try to use the %Workspace% inline variable in the model it gives me an error that the FC does not exist when I try to run it. If I pull the iterator out and replace it with a single gdb from the folder and name it "Workspace" the model runs just fine.

Attached is a trimmed down version of the model with just the first process being run, where the pathname for Wilderness = %Workspace%\Wilderness

Hopefully there's something simple I'm just missing because I haven't used this before. Thanks

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