I setup tezos-reward-distributor, but I don't understand the error below? What is the problem?

2019-04-09 11:05:40,544 - main - INFO - MainThread - Loading baking configuration file /home/tezos-rewarder/pymnt/cfg/tz1XXX.yaml
    .format(pymnt_addr, conf_obj[('%s_manager' % PAYMENT_ADDRESS)]))
exception.configuration.ConfigurationException: Payment Address (KT1ZZZ) is not eligible for payments. 
Public key of Manager (tz1YYY) is not revealed.
Use command 'reveal key for <src>' to reveal your public key. 
For implicit accounts, setting your account as delegate is enough.

I'm confused as to why this is an error because the payment_address is a KT1 address that is 1. revealed and 2. I've successfully transferred funds from it to other accounts, using tezos-client directly.

It is correct that its manager tz1YYY address is not revealed. But why does that matter? The KT1 address can successfully transfer funds, so why does the code impose this requirement for the manager address?

Tezos doesn't require this, but tezos-reward-distributor seems to. It seems like a bug to me...?

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