Loss of filtering, or am I blind?

I've recently experienced a rather strange issue with Hazel, which I'm unable to solve

I have an automated photo workflow, in which I have an old rule (Part of it shown on top of the screenshot below), which checks to see if a subfolder is labeled green, to indicate a folder is ready for processing. Now this works perfectly.

However, I no longer have the "any of its subfiles or subfolders" option when I create new rules - The "grouping" dropdown is simple no longer there (As shown on bottom of the screenshot), which means I can only check and manipulate current folder/file.

Help! I think I've tried everything I possibly can

That's by design. You have to do it one level down. Too many people were using that option incorrectly that I felt that I had to bury it so that only advanced users could find it.

It seems by your screenshot that you did find it though it's still not clear to me that you are using it correctly. The way you have it, it will match the first folder that contains anything somewhere underneath it that is green and run the workflow against that folder, not against whatever is green.

The reason for this matching, is that the folder is part of a bigger photography workflow.

What happens here, is that I look for "projects", in which the Output folder is labeled green, indicating that I'm done with processing of the images. In case a project contains a finalized Output folder, the entire project is moved along for further processing, importing the images into Aperture etc. So, I process based on a childs label state.

I guess I'm not advanced enough to locate the rule anymore

Is it moved lately, or have I just been lucky previously?

Are you talking about getting at the target pop-up? For that, create a nested condition by holding down option while clicking the + button to add a condition.

Exactly! Great, thanks