I struggled with this for years — thinking it was a bug — until finally realizing that the OR statements inform ALL picked instances even if ONE statement is true.
I guess it's a conflict between the event sheet system and pure logic, but it's always bothered me as well. If PlayerObject isn't carrying a torch, it shouldn't be relevant — if FireflyObject is lit, the PlayerObject should change animation. Isn't that the definition of the word OR?
A true OR that prevents non-true statements from affecting picking would be amazing!