DuckfaceNinja
The OR blockhas two conditions : Blue is outside layout, red is outside layout, one needs indeed to be true for the action to occur, however, when it occurs, it will pick the objects that meet the whole condition(the blue outside of the layout, and the red outside of the layout), since there are no red outside, none are destroyed, basically, everyone is picked unless a picking is done in the conditions.
If the"Red is outside of layout" was not there, red instances would not be filtered by it, and so all would be picked, and so destroyed.