I have an index subgroup which I want to prevent from beeing applied to the Smart Rule, so I ticked “Exclude subgroups”:
However this doesn’t make any difference: The files in the indexed subgroup still show up in the Smart Rule. 
Is this a bug? What is the best way to work around it?
I just tried both local/global smart groups and smart rules and it seems to work as expected over here. A screenshot of the complete smart rule plus a screenshot of its results using List view including the Location column would be useful.
@cgrunenberg, thanks for looking into this!
I had to make a modified duplicate “Move to FileME copy” of the original rule, but it shows the same behaviour.
First the List view of the Smart Rule with “Exclude Subgroups” checked:
And then the top of the normal list view of the Inbox (showing that FileMe is an Indexed Folder group in the Inbox):
Thirdly the List view of the Smart Rule with “Exclude Subgroups” unchecked:
(Please note, that after checking/unchecking the checkbox I clicked Ok to really change the rule. And then I reopened the Smart Rule.)
Hope this explains what I’m seeing.
Unrelated: You do not need two All conditions in a row. One suffices.
True, it comes from a “grand plan” I have: I anticipate more types of files I want to move (with various content-, name-, etc condition blocks) and want to keep the conditions for each type separated,
It’s indeed caused by the nested conditions, the next release will fix this.
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Ah, I see. Thanks for investigating.
Quite a strange cause for the bug, isn’t it?