Thanks for the reply @zackm. You do raise a good point. The reason for my logic was that I did not want to automatically exclude any new statuses that SolarWinds might add in the future. For example my earlier thinking about Unreachable after it was introduced was that I did want the previously triggered Alert to Reset if the related monitor went to Unreachable. However now that the new state has been around a while, I have changed that opinion and now feel the opposite which is the reason I am trying to make this change.
But when you step back and look at my logic it is really a cup-half-full or cup-half-empty situation. I am not automatically including new status values in my Reset evaluation but there also might be a reason that I absolutely want to include them as well. Either way of looking at it might still result in the need for an adjustment to the conditions which I was trying to limit.
While the logic is debatable and changing the logic as you suggest would likely resolve my problem, this really sidesteps why this proper condition design does not work. The statements should work even if you do not agree with the logic. I am looking to understand why they do not.