I believe the problem may be the OnOff controller for the DO. For a OnOff controller to be effectively controlled, both y_Min and y_Max need to be controlled (y_S is irrelevant ...). But, with the standard OnOff controller, you only have 1 outgoing signal: so from downstream (NH controller) to upstream (DO controller), you can only control 1 interface variable.
This is why, you should rather use a P(ID) controller for the DO - in which only y_S needs to be controlled.
I would therefore suggest the following:
NH ctl [OnOff]: y_Min = 1.5, y_Max = 3, u_Off = 0, u_On = 1.5
DO ctl [P(ID)]: can start off with all default
Interface link: From = u, To = y_S