Cursor bug?

I have a function that reads through one table via a cursor to make updates to a different table. There is a row in this table with a column that has a null value. The following row, in that same column, is not null.

When the cursor loops through the table it seems to be treating the non null row as being null. The fetch should be inserting the new non value into the variable but doesn't appear to be.

I have attached. pg_dump of original table (knocked it down to three rows).
pg_dump of destination table
File with function
File to execute function and see result

Shouldn't the destination table have 2 rows instead of just the one.

Any help on what I might be overlooking would be appreciated.