Data identification using RLS

Hello guys I identified data using recursive least square method with forgetting in matlab. Code is below. It works just fine it gives me trasnfer fucntion (tf) and graph. And now I have to do same thing in simulink using matlab function, but it gives some weird results. Do you know what I'm doing wrong?

Matlab code      

                         0.002879
  output of rls: tf=  ----------------------
                      z^2 - 1.883 z + 0.8873

clc
clear
load data_cela.mat %data contains input U and "respose" Y
time=1:1:1170;
t=time';
u=U; %input
y=Y; %output
input = 3;
output = 2;
system = input + output;   
N = length(y);              
%initial conditions
sigma = 1;        
C = sigma*eye(system);      %p
P = ones(system,1);        
lamda = 1;               %forgetting factor

for n=3:N
    for i=1:2
        W(i) = y(n-i);          %output
    end
    for i=1:3
        V(i) = u(n-i+1);        %input
    end
    z = [V';W'];
    sample_out = y(n);
    pom(n)= z' * P;
    error(n) = y(n) - pom(n); 
    C = (C - ( (C*z*z'*C)/( lamda+(z'*C*z) ) ))/lamda;

      P = P + (C*z* (sample_out - (z'*P) ) );
      change(1:system,n) = P;
  end
  f_param = [P(1:3);-P(4:5)];
  num = [P(1:3,1)];
  den = [1;-P(4:5,1)];
  num1 = num(3,1);
  trasferfunction = tf(num1,den',1)

graf2 = lsim(trasferfunction,u, t,'zoh');

figure(3)
plot(t,graf2, t, y,'r')
title('Recursive method')
legend('Identified','Measured')
grid on

Simulink scheme

Matlab_function rls_iden code

function [P,C] = fcn(u,y,P1,C1)
%initial conditions
W=[];V=[];z=[];error=[];
sigma=1;
pom=zeros(1,4);
lamda = 1;
input = 3;
output = 2;
sys = input + output;   
N = length(u);
C = sigma*eye(sys);      
P = ones(sys,1);
%loop
for n=3:N
    for i=1:2
    W(i) = y(n-i);
    end
    for i=1:3
    V(i) = u(n-i+1);
    end
    z = [V';W'];
    sample_out = y(n);
    pom(n)= z' * P;
    error(n) = y(n) - pom(n); 
    C = ((C - ( (C*z*z'*C)/( lamda+(z'*C*z) ) ))/lamda)+C1;
    P = (P + (C*z* (sample_out - (z'*P) ) ))+P1; 
end

All parameters are 1 which I think it shouldn't be. It seems like inner loop didn't do anything and parameters P stayed same like initial condition of P.