There were two issues preventing this workflow from running succesfully:
1.) In the first activity, I removed the 'Activate Activity' action and just entered it from the submit button on the form:

After this, the workflow hit another snag when attempting to get the Project, and Project Id, from an entity. The 'Project' is already set by the 'Create Project' action, and so it is unnecessary to set that. I removed that action. The 'Project Id' cannot be set from the Entity, however, because the workflow is not holding the Project it just created in that way. All we really need to do is get the project id from the Project workflow attribute as in this lava: 
Now the workflow appears to run successfully.
