EDIT: Seems to be working now. I think I was just not selecting the slice. The project path however does show that it thinks the filepath to my project yyp is in the same folder as my .aseprite file for some reason but it still works.
It doesn't seem to properly retain my GameMaker Project Path which may be causing it not to work? I try updating but it doesn't show any sprite updates and I don't see any newly added sprites on GM based on the subfolder I indicated.
I set it to the absolute file path and then when I go back to the Configure GM Link. it thinks my project YYP file is inside the same folder as the .aseprite file which it is not.
Any suggestions?