It is the LOS it will only see the first instance of that object that you pick and then do the action.
your event 85 look like this
+ BOUNTYHUNTERfrigate: Has LOS to PIRATEfrigate
+ System: OR
+ BOUNTYHUNTERfrigate: Has LOS to PIRATEcorvette
+ System: OR
+ BOUNTYHUNTERfrigate: Has LOS to PIRATEbattleship
-> BOUNTYHUNTERfrigate: Deactivate RTS movement
to make it work right change it to this
+ System: For each PIRATEfrigate
+ BOUNTYHUNTERfrigate: Has LOS to PIRATEfrigate
+ System: OR
+ System: For each PIRATEcorvette
+ BOUNTYHUNTERfrigate: Has LOS to PIRATEcorvette
+ System: OR
+ System: For each PIRATEbattleship
+ BOUNTYHUNTERfrigate: Has LOS to PIRATEbattleship
-> BOUNTYHUNTERfrigate: Deactivate RTS movement