How do I apply a guitar capo to a guitar arrangement?

There is a song that I am trying to arrange in which my guitar capo is placed at the second fret.

My arrangement has a main staff that is linked with guitar tableture. I noted the tabs as if I was playing my guitar with the capo at the second fret. I tried put a capo on the main staff by putting a staff text on the very first note and adjusting the capo settings through Staff Properties to "Capo Fret 2". However, the arrangement on my main staff did not transpose two half-steps up (at Capo Fret 2) and it still sounds as if I was playing without a capo. Can someone explain what I am doing wrong?