Cannot apply mask to bitmap

I’ve been able to crop the bitmap a few times in the software using a tool layer and rectangle. I read about being able to use multiple shapes, so now I’m trying to cut a hole in the image using a border shape and an internal shape on tool layers.

However, there is no option to mask when I select the image and the grouped tool shapes.

File attached. --removed

For some reason, the rectangles were open vectors. Discovered that based on this comment in another thread:

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