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You must use wallet funds for this type of in game purchase.
This is how in-game purchases work.
https://partner.steamgames.com/doc/features/microtransactions#2
Its mostly to avoid issues with chargebacks. Especially since in-game purchases may be used for one off things like xp boosts or such, and you cant really claw that back from people. Using steam wallet mostly just protects steam from charge backs causing issues for developers