Lets breakdown event 3 (and further) down.
The 'Every tick' is not needed.
The conditions read as follow ....
'For each' runs trough every Sprite. Each run it picks 1 Sprite.
So at any point in the iteration, the picklist now contains 1 Sprite.
Event 4 starts picking from that (previous picked) picklist.
It picks from that picklist all sprites with id = 1 and clicked = 1.
The result is a new (refined) picklist. If that new picklist is empty, the conditions marks as untrue, and will not run its sub events, it will not run its actions.
Lets assume that this new piclist is not empty at one point in the iteration.
Or, lets assume that there is a Sprite with id = 1 AND clicked = 1.
Now event 5 start picking from the (previous picked) picklist (in event 4).
That previous picked list can only contain Sprites with id = 1. No others. Hence event 5 can never ever pick a Sprite with id =2 from a list that only contains Sprites with id = 1.
Event 5 will never ever run, its picklist is always empty.
Event 6 is a sub. Not only has it the same problem. It is also a sub under event 5. Since event 5 can never ever run, event 6 is never ever reached.
Plz read this:
https://www.scirra.com/manual/75/how-events-work