Is this the recommended way to test lifecycle state transitions in IdentityNow?

Yes, this is the recommended way to test lifecycle state transitions in IdentityNow. To validate how lifecycle states function, administrators can manually set up and enable lifecycle states for testing purposes. By selecting a test identity that is not already in the target state, manually transitioning that identity to the target state using the admin user interface provides a direct and controlled way to observe the transition. The results can be verified in the identity's activity page, where changes in the lifecycle state will be logged, helping to ensure that the lifecycle state functions as expected.

References:

SailPoint IdentityNow Lifecycle Manager Documentation.

SailPoint IdentityNow Lifecycle State Configuration Guide.