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Thanks for your reply the issue is that at my company the good documentation practice for dates is DD-MMM-YYYY and that is not an option that the DateTime tool recognizes as a valid incoming format type
LOL stripping down the workflow to post this led me to my own answer. I was trying to use the multi-tool to get to my desired date format. I have to use the "current" format for the string ('%d-%b-%y' in this case) in the tool so it recognizes the incoming data first, then it converts it to a date.