Imagine this scenario:
> IF PlayerObject is carrying a torch
> OR if FireflyObject is lit
> THEN change PlayerObject's animation to EyesSquinting
In the above condition, PlayerObject would be un-selected if the FireflyObject fires true, and as a result you wouldn't be able to change PlayerObject's animation.
But the implication is that you want to change the animation on the ones that are carrying a torch, so since it couldn't find any then it's correct to apply to 0 instances. If you want to apply to PlayerObjects because Firefly is lit, you have to ask yourself, which PlayerObjects? Because none of them are carrying a torch.