Closing as not a bug. It is working correctly.
Since one of the conditions in the OR block is true (the global variable check), the event runs. However it still picks all instances according to if they met the condition. Since no "Text" instances meet the condition "Is Variable1", the event runs with zero Text objects picked. Therefore despite the fact the event runs the "Set text" action has no effect. Note that if it did run, that would contradict the condition, allowing an action to run for an object that did not meet one of the event's conditions.