There is a conflict between the JCL and the data set label. The JCL supplied DSORG=PO overrides the DSORG=PS in the label.
Parameters like DSORG=PO can be added to your JCL even though you did not code them. SMS ACS routines, Data Classes, the JCL SPACE, LIKE and DCB parameters can all implicitly add to JCL.
The severity is 8.
Determine where the DSORG=PO is coming from. Look for directory blocks in the space parameter, look at the label of data sets referenced by the LIKE or DCB parameter, and use ISMF to look at the definition of any Data Class assigned to the data set.
A conflict like this can either be removed at its source or you may override the conflict by coding DSORG=PS on the DD statement or in the TSO ALLOCATE or ATTRIB command.
DFSMSdfp