Choose order statuses by payment method
The former Customize statuses treated as processing control is now Payment method order statuses under Settings → POM Tweaks → E-Commerce → General.
For the previous behavior, add a rule for each required offline payment method and select Processing under When an offline payment is accepted. Leave After payment confirmation at Keep WooCommerce default. The setting also supports other statuses and separate rules for confirmed payments.
See Choose order statuses by payment method for configuration, payment timing, compatibility and verification.