If it's always clicking on Sprite 1 to spawn Sprite 1, then you use click on Sprite 1 spawn Sprite 1. If it's clicking on any Sprite in the family to spawn Sprite 1 then you can keep it as clicking on Family and then specifically spawn Sprite 1.
The inverted overlap is a good use of the family because you don't have to say is not overlapping Sprite1, is not overlapping Sprite 2. That's pretty much what the families are for, cutting down on redundant code.
Only pick the family when it can be any of the family. In your scenario above it has to be Sprite 1 so you've got to pick the individual object with the create action.