This is NORMAL. You have selected "start batch when application starts". This kind of start condition is special, executed ONCE at startup.
For time-based repeats you have to use "Start batch at specified date/time". Then you can do time-based repeats.
If you want BOTH (start when application starts AND periodic repetition), you need to add TWO tasks:
Run on app startup
Run from ANY date in the past say today 01:00 and repeat hourly.