Why is this custom Mac Keyboard Shortcut not working?

This is probably a very simple question by someone that has just started using custom keyboard shortcuts on Mac. I want to set up a shortcut for opening a terminal window in a given folder that's being reached by Finder. So I set up the following keyboard shortcut in the Settings app:

I have even set it up both for the Apple Terminal and for iTerm to see if anything changes. However, even after setting the commands, I cannot make them work. I believe that, after browsing to a given folder through Finder, executing the shortcut should bring the terminal window, shouldn't it? Thanks a lot in advance!

It seems you need to have a folder selected in Finder to make it work, it won't if you've got an empty selection or a file selected.

Also make sure that your keyboard shortcut is not used by any other function, it doesn't warn about it. (I tried CMD+CTRL+X, which seemed to work, but had trouble with many other combinations.)