From what I remember, the collision mask is used to place the physics body on that layer. For example, if you have an object on mask 1 and 3, then collision objects on layer 1 and/or 3 will react to it. Looking at the pictures, I don't necessarily see anything amiss.
One thing you could try is enabling all of the layers/masks on both objects, and then slowly disable each layer to see if you can figure out the right combination of masks/layers on both objects that will work as needed.
Looking at the pictures, it looks like your wall (labeled Wall??) is a KinematicBody. I don't remember right off, but I think KinematicBodies do not collide with each other by default, which could be why the collision is not working. I would try enabling all the same layers/masks first though, as that is probably the more likely cause of the collision not working.
Though to be honest, I'm not very well versed in collision layers/masks in Godot, nor really the 2D side. Hopefully this is of some help!
