Ah, you fell into the trap! The SSD mustn't be formatted, you need to leave it Raw so the installer preps it as the Cache drive for the HDD.
Most of the time I just pull the Blade SSD's out and install a 1 or 2 TB version to maximize the system's performance. Setting up the Blade SSD as the boot drive and hosting the Apps leaving a good part of the drive empty so Virtual RAM, OS caching and paging (if running BootCamp) have plenty of room and the current project before moving it over to the HDD. Leaving the HDD as the primary storage of my media and work files.
At the time Apple went down this path SSD's were quite expensive! So to get a bit more performance out of the disk drive which was also still not as good as some of the newer platter drives, Apple added a smaller SSD as a cache to the HDD. Today the needed drive is not that bad cost wise OWC Aura Pro X2 SSD and if you're upto it here's the guide iMac Intel 21.5" Retina 4K Display (2017) Blade SSD Replacement
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