Color Tag Folder Based on Contents

A bit of context:
Mac mini M1 w/Ventura

When downloading files (to iCloud Downloads folder) I sort them into 'Processing' folders based on file types (pdf, video, etc.).
I would like Hazel to monitor these folders and add a color tag (gray) when there is a file in the respective folder, or no color tag/remove color tag ('X') when they're empty.

I created a 2-step rule for the top-level iCloud 'Downloads' folder that 'almost' works. It will add the color tag if there are contents, but if the folder goes back to empty it won't 'remove' the color tag (set color tag as 'X'.

I've checked the both the Rule Status and the Logs and both show the correct rule as activating for the respective folders (ie. rule 1 for empty, rule 2 for files). The only hiccup is the color tag remaining when the folder is empty.

Rules are as follows:
Rule 1: if any sub-file/folder is less than 1, set color label to X (I've tried this as 'les then 0' also with no effect)
Rule 2: if any sub-file/folder is greater than 0, set color label to 'gray'

As I said, rule 2 works fine (adding color tags), and Hazel 'shows' rule 1 working, but it's not 'resetting' the color tag to X.
Rule 1 'does' work on the first pass as a new rule (I've reset it a few times) in that it doesn't add a color tag to an empty folder, but after the initial scan/change it no longer works.

It's the updating of empty folders that's the problem.

Any help is appreciated.

PS (for the Noodlesoft devs): I originally built these rules on a MBA M2 w/Sonoma beta, and while the color tag issue was the same, I noticed that it actually reversed the color tagging on the Mini M1/Ventura, so the empty folders were tagged, and the folder w/files were clear. So weird Sonoma/iCloud/color tag glitch perhaps.

Can you go through the full troubleshooting guide here? Post the results from that.

Results from troubleshoot:

"Preview Rule":
As noted there are 2 rules for 2 conditions - empty folder, folder with contents
Both rules correctly show working (Green) or not working (Red) based on the individual folder condition.

Rule Status:
All folders show correct rule application based on condition (Rule 1 'matched' for empty folders, Rule 2 'matched' for folders with contents).

Logs (in Debug mode):
Logs show correct rule application, but 'not executing actions' when the state has changed from contents to empty.

Example of this issue here:

Code: Select all: 2023-08-15 12:21:54.486 hazelworker[84987] DEBUG: To Process [PDFs]: Rule signature matched for rule To Process 1. Not executing actions.

I have a folder labeled 'To Process [PDFs]'. This folder contained several files, so would 'match Rule 2, set color to gray'.
I moved all of the files out of that folder and ran the rules again. As the folder is now empty, it should now 'match Rule 1, set color to X (ie. remove the color tag)'. As the log shows, it correctly matches Rule 1 (empty folder) but then states 'not executing actions'. This is the broken piece.

Below is the log from the most recent "run rules":
All folders are correctly matching rules 1 or 2, but [PDFs] & [Video] should have no color tags, but still do.

2023-08-15 12:34:55.296 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Thread 0x600000a2c480: Run worker for folder: /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads
2023-08-15 12:34:55.343 hazelworker[85145] Running worker (v5.2.2) for folder with identifier: 16777229-71777.
2023-08-15 12:34:55.346 hazelworker[85145] ###Arch: arm64
2023-08-15 12:34:55.346 hazelworker[85145] ###main load address: 0x104bec000
2023-08-15 12:34:55.346 hazelworker[85145] ###Hazel Core load address: 0x104dfc000
2023-08-15 12:34:55.346 hazelworker[85145] ###Noodle load address: 0x1050f4000
2023-08-15 12:34:55.346 hazelworker[85145] ###CK load address: 0x104cf0000
2023-08-15 12:34:55.356 hazelworker[85145] DEBUG: Program is licensed.
2023-08-15 12:34:55.365 hazelworker[85145] DEBUG: Error reading file /Users/TKN/Library/Application Support/Firefox/prefs.js: Error Domain=NSCocoaErrorDomain Code=260 "The file “prefs.js” couldn’t be opened because there is no such file." UserInfo={NSFilePath=/Users/TKN/Library/Application Support/Firefox/prefs.js, NSUnderlyingError=0x60000105a610 {Error Domain=NSPOSIXErrorDomain Code=2 "No such file or directory"}}
2023-08-15 12:34:55.367 hazelworker[85145] DEBUG: Could not find entry for download in Chrome preference file.
2023-08-15 12:34:55.368 hazelworker[85145] DEBUG: Could not read Mail preferences.
2023-08-15 12:34:55.369 hazelworker[85145] Processing folder Downloads (forced)
2023-08-15 12:34:55.369 hazelworker[85145] DEBUG: Pausing to wait for things to settle down.
2023-08-15 12:34:57.444 hazelworker[85145] DEBUG: Processing directories: (
"/Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads"
)
2023-08-15 12:34:57.448 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Checking events for path /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads, folder Downloads
2023-08-15 12:34:57.450 hazelworker[85145] DEBUG: Received file event: {
date = "2023-08-15 19:34:55 +0000";
path = "<NoodlePathSet: 0x600001e74300>\n /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads : 18446744073709551615\n";
}
2023-08-15 12:34:57.450 hazelworker[85145] DEBUG: About to process directory /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads
2023-08-15 12:34:57.454 hazelworker[85145] To Process [Audio]: Rule To Process 1 matched.
2023-08-15 12:34:57.454 hazelworker[85145] DEBUG: Manual run. Forcing actions to be executed.
2023-08-15 12:34:57.455 hazelworker[85145] Could not read tags file
2023-08-15 12:34:57.456 hazelworker[85145] DEBUG: finderprojects dictionary not found in sidebar preferences.
2023-08-15 12:35:13.564 hazelworker[85145] DEBUG: Rule executed. Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Audio]: 2023-08-15 19:34:57 +0000
2023-08-15 12:35:13.564 hazelworker[85145] DEBUG: Action changed file: To Process [Audio]
2023-08-15 12:35:13.567 hazelworker[85145] To Process [PDFs]: Rule To Process 1 matched.
2023-08-15 12:35:13.568 hazelworker[85145] DEBUG: Manual run. Forcing actions to be executed.
2023-08-15 12:35:13.570 hazelworker[85145] DEBUG: Rule executed. Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [PDFs]: 2023-08-15 19:35:13 +0000
2023-08-15 12:35:13.570 hazelworker[85145] DEBUG: Action changed file: To Process [PDFs]
2023-08-15 12:35:13.571 hazelworker[85145] DEBUG: .DS_Store: File is hidden/invisible. Skipping.
2023-08-15 12:35:13.573 hazelworker[85145] test: Rule To Process 2 matched.
2023-08-15 12:35:13.573 hazelworker[85145] DEBUG: Manual run. Forcing actions to be executed.
2023-08-15 12:35:13.573 hazelworker[85145] DEBUG: Could not find existing tags with color 7. Setting color directly.
2023-08-15 12:35:13.573 hazelworker[85145] DEBUG: Rule executed. Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/test: 2023-08-15 19:35:13 +0000
2023-08-15 12:35:13.574 hazelworker[85145] DEBUG: Action changed file: test
2023-08-15 12:35:13.575 hazelworker[85145] To Process [Video]: Rule To Process 1 matched.
2023-08-15 12:35:13.575 hazelworker[85145] DEBUG: Manual run. Forcing actions to be executed.
2023-08-15 12:35:13.576 hazelworker[85145] DEBUG: Rule executed. Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Video]: 2023-08-15 19:35:13 +0000
2023-08-15 12:35:13.577 hazelworker[85145] DEBUG: Action changed file: To Process [Video]
2023-08-15 12:35:13.578 hazelworker[85145] To Process [Apps]: Rule To Process 2 matched.
2023-08-15 12:35:13.578 hazelworker[85145] DEBUG: Manual run. Forcing actions to be executed.
2023-08-15 12:35:13.578 hazelworker[85145] DEBUG: Could not find existing tags with color 7. Setting color directly.
2023-08-15 12:35:13.578 hazelworker[85145] DEBUG: Rule executed. Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Apps]: 2023-08-15 19:35:13 +0000
2023-08-15 12:35:13.579 hazelworker[85145] DEBUG: Action changed file: To Process [Apps]
2023-08-15 12:35:13.580 hazelworker[85145] To Process [Images]: Rule To Process 2 matched.
2023-08-15 12:35:13.580 hazelworker[85145] DEBUG: Manual run. Forcing actions to be executed.
2023-08-15 12:35:13.580 hazelworker[85145] DEBUG: Could not find existing tags with color 7. Setting color directly.
2023-08-15 12:35:13.580 hazelworker[85145] DEBUG: Rule executed. Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Images]: 2023-08-15 19:35:13 +0000
2023-08-15 12:35:13.580 hazelworker[85145] DEBUG: Action changed file: To Process [Images]
2023-08-15 12:35:13.581 hazelworker[85145] To Process [Docs]: Rule To Process 2 matched.
2023-08-15 12:35:13.581 hazelworker[85145] DEBUG: Manual run. Forcing actions to be executed.
2023-08-15 12:35:13.581 hazelworker[85145] DEBUG: Could not find existing tags with color 7. Setting color directly.
2023-08-15 12:35:13.581 hazelworker[85145] DEBUG: Rule executed. Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Docs]: 2023-08-15 19:35:13 +0000
2023-08-15 12:35:13.582 hazelworker[85145] DEBUG: Action changed file: To Process [Docs]
2023-08-15 12:35:13.583 hazelworker[85145] To Process [eBooks): Rule To Process 2 matched.
2023-08-15 12:35:13.583 hazelworker[85145] DEBUG: Manual run. Forcing actions to be executed.
2023-08-15 12:35:13.583 hazelworker[85145] DEBUG: Could not find existing tags with color 7. Setting color directly.
2023-08-15 12:35:13.584 hazelworker[85145] DEBUG: Rule executed. Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [eBooks): 2023-08-15 19:35:13 +0000
2023-08-15 12:35:13.584 hazelworker[85145] DEBUG: Action changed file: To Process [eBooks)
2023-08-15 12:35:13.584 hazelworker[85145] DEBUG: Writing out DB file for /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads to path: /Users/TKN/Library/Application Support/Hazel/16777229-71777.hazeldb
2023-08-15 12:35:13.585 hazelworker[85145] DEBUG: Directory /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads processed in 16.134962 seconds
2023-08-15 12:35:13.585 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Checking events for path /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads, folder Downloads
2023-08-15 12:35:13.586 hazelworker[85145] DEBUG: Sleeping
2023-08-15 12:35:14.575 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Thread 0x600000a2c480: Received events (
{
date = "2023-08-15 19:35:14 +0000";
path = "/Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Audio]";
shouldDoFullScan = 0;
},
{
date = "2023-08-15 19:35:14 +0000";
path = "/Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [PDFs]";
shouldDoFullScan = 0;
},
{
date = "2023-08-15 19:35:14 +0000";
path = "/Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Video]";
shouldDoFullScan = 0;
}
) for stream at path: /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads
2023-08-15 12:35:14.576 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Thread 0x600000a2c480: Run worker for folder: /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads
2023-08-15 12:35:14.576 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Task already running for folder: /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads
2023-08-15 12:35:15.666 hazelworker[85145] DEBUG: Could not read Mail preferences.
2023-08-15 12:35:15.666 hazelworker[85145] DEBUG: About to process directory /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads
2023-08-15 12:35:15.670 hazelworker[85145] DEBUG: To Process [Audio]: Rule signature matched for rule To Process 1. Not executing actions.
2023-08-15 12:35:15.670 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Audio]: 2023-08-15 19:35:15 +0000
2023-08-15 12:35:15.671 hazelworker[85145] DEBUG: To Process [PDFs]: Rule signature matched for rule To Process 1. Not executing actions.
2023-08-15 12:35:15.671 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [PDFs]: 2023-08-15 19:35:15 +0000
2023-08-15 12:35:15.672 hazelworker[85145] DEBUG: .DS_Store: File is hidden/invisible. Skipping.
2023-08-15 12:35:15.674 hazelworker[85145] DEBUG: test: Rule signature matched for rule To Process 2. Not executing actions.
2023-08-15 12:35:15.674 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/test: 2023-08-15 19:35:15 +0000
2023-08-15 12:35:15.676 hazelworker[85145] DEBUG: To Process [Video]: Rule signature matched for rule To Process 1. Not executing actions.
2023-08-15 12:35:15.676 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Video]: 2023-08-15 19:35:15 +0000
2023-08-15 12:35:15.678 hazelworker[85145] DEBUG: To Process [Apps]: Rule signature matched for rule To Process 2. Not executing actions.
2023-08-15 12:35:15.678 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Apps]: 2023-08-15 19:35:15 +0000
2023-08-15 12:35:15.680 hazelworker[85145] DEBUG: To Process [Images]: Rule signature matched for rule To Process 2. Not executing actions.
2023-08-15 12:35:15.680 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Images]: 2023-08-15 19:35:15 +0000
2023-08-15 12:35:15.681 hazelworker[85145] DEBUG: To Process [Docs]: Rule signature matched for rule To Process 2. Not executing actions.
2023-08-15 12:35:15.681 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Docs]: 2023-08-15 19:35:15 +0000
2023-08-15 12:35:15.683 hazelworker[85145] DEBUG: To Process [eBooks): Rule signature matched for rule To Process 2. Not executing actions.
2023-08-15 12:35:15.683 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [eBooks): 2023-08-15 19:35:15 +0000
2023-08-15 12:35:15.683 hazelworker[85145] DEBUG: Writing out DB file for /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads to path: /Users/TKN/Library/Application Support/Hazel/16777229-71777.hazeldb
2023-08-15 12:35:15.684 hazelworker[85145] DEBUG: Directory /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads processed in 0.017768 seconds
2023-08-15 12:35:15.685 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Checking events for path /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads, folder Downloads
2023-08-15 12:35:15.685 hazelworker[85145] DEBUG: Received file event: {
date = "2023-08-15 19:35:14 +0000";
path = "<NoodlePathSet: 0x600001e64540>\n /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [PDFs] : 0\n /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Audio] : 0\n /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Video] : 0\n";
}
2023-08-15 12:35:15.685 hazelworker[85145] DEBUG: Sleeping
2023-08-15 12:35:17.733 hazelworker[85145] DEBUG: Could not read Mail preferences.
2023-08-15 12:35:17.733 hazelworker[85145] DEBUG: About to process directory /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads
2023-08-15 12:35:17.736 hazelworker[85145] DEBUG: To Process [Audio]: Rule signature matched for rule To Process 1. Not executing actions.
2023-08-15 12:35:17.736 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Audio]: 2023-08-15 19:35:17 +0000
2023-08-15 12:35:17.738 hazelworker[85145] DEBUG: To Process [PDFs]: Rule signature matched for rule To Process 1. Not executing actions.
2023-08-15 12:35:17.738 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [PDFs]: 2023-08-15 19:35:17 +0000
2023-08-15 12:35:17.739 hazelworker[85145] DEBUG: .DS_Store: File is hidden/invisible. Skipping.
2023-08-15 12:35:17.739 hazelworker[85145] DEBUG: Skipped /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/test. File/folder not part of change set/file event.
2023-08-15 12:35:17.740 hazelworker[85145] DEBUG: To Process [Video]: Rule signature matched for rule To Process 1. Not executing actions.
2023-08-15 12:35:17.740 hazelworker[85145] DEBUG: Updating match date for file /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Video]: 2023-08-15 19:35:17 +0000
2023-08-15 12:35:17.741 hazelworker[85145] DEBUG: Skipped /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Apps]. File/folder not part of change set/file event.
2023-08-15 12:35:17.741 hazelworker[85145] DEBUG: Skipped /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Images]. File/folder not part of change set/file event.
2023-08-15 12:35:17.741 hazelworker[85145] DEBUG: Skipped /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [Docs]. File/folder not part of change set/file event.
2023-08-15 12:35:17.742 hazelworker[85145] DEBUG: Skipped /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads/To Process [eBooks). File/folder not part of change set/file event.
2023-08-15 12:35:17.742 hazelworker[85145] DEBUG: Writing out DB file for /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads to path: /Users/TKN/Library/Application Support/Hazel/16777229-71777.hazeldb
2023-08-15 12:35:17.743 hazelworker[85145] DEBUG: Directory /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads processed in 0.010216 seconds
2023-08-15 12:35:17.744 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Checking events for path /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads, folder Downloads
2023-08-15 12:35:17.744 hazelworker[85145] DEBUG: Sending metrics to scheduler. Next scheduled run: 4000-12-31 16:00:00.000
2023-08-15 12:35:17.744 hazelworker[85145] Done processing folder Downloads
2023-08-15 12:35:17.744 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Received metrics for folder /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads: {
directoryDepth = 1;
requestedSchedulingTime = "4001-01-01 00:00:00 +0000";
triggerPaths = "<NoodlePathSet: 0x600001f0af20>\n";
unavailablePaths = "{(\n)}";
}
2023-08-15 12:35:17.745 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Timer scheduled for folder /Users/TKN/Library/Mobile Documents/com~apple~CloudDocs/Downloads at 4001-01-01 00:00:00 +0000
2023-08-15 12:35:17.747 86Z3GCJ4MF.com.noodlesoft.HazelHelper[64128] DEBUG: Thread 0x600000a2c480: Task removed: [85145]

Not executing actions means that it matched that same rule last time so it already executed them. Can you show, for one specific folder, matching one rule, then matching the other?

Also, can you post screenshots of your rules?

Folder Structure:
All folders are correctly showing state except [Video] which is empty and should have no color tag.

Rules Match, rule 1, To Process [Images] folder:

Rules Match, rule 2, To Process [Images] folder:

Rules Match, rule 1, To Process [Video] folder:

Rules Match, rule 2, To Process [Video] folder:

Note: [Video] folder is empty, and correctly matches Rule 1, which should show 'no color tag', but color tag remains.

Can you try this in a non-iCloud folder and see if you get the same results?

Okay, I've tried it using the User/Downloads folder, with no change.

Created 2 folders - Test 1 and Test 2, with one file in Test 2. Rules 1 and 2 are identical to previous set for iCloud.

With the file in the Test 2 folder, on the first run of the rules it correctly identifies each folder state, and adds a gray color tag to the Test 2 folder (folder w/contents), no changes to Test 1 (empty folder).
Then I moved the file to Test 1 folder. This *should* result in the gray tag being applied to the Test 1 folder and removed from Test 2.
Unfortunately, while it *did* add the color tag to Test 1, as with the iCloud folders it failed to remove the tag from the now empty folder.

One side note, I figured that at worst I could simply assign 2 different color tags to denote the states rather than removing the tag, since that's not working. I changed the rules (for both sets - iCloud & Test) and assigned gray to 'empty' and red to 'contents' and ran the rules.

In the User/Downloads (test) set it changes the colors correctly, but only *after* refreshing the Finder window.
In the iCloud set it *adds* the now Red color for contents, in addition to the existing Gray color from the previous rule setting.

Also, for reference and info since it's not your app, this 'adding' of the red color tag to the iCloud folders did *not* occur in PathFinder. It added the gray color to the empty folders per the rule change, but did not change any of the previously color tagged folders.

The User/Downloads folder reflects correctly.

Sorry, a bit unclear on what you said about PathFinder. Could you elaborate on that?

In the Mac's Finder, changing the colors in the rules resulted in the red color tag being added to the folders, in addition to the existing grey tag.

I also have PathFinder installed and looked to see how it was reacting with the rules/colors.
The failure to remove tags from now empty folders does exist in PathFinder as well as Finder, however, when I changed the colors in the rules, the color tags in PathFinder didn't change at all. It kept the existing gray color, but didn't recognize or add the red as Finder did.

Could this then be an issue with MacOS and how it treats color tags within the system rather then a Hazel issue?

If multiple apps have the same problem, then probably. It might be worth checking with Apple on this.

Godwulfe wrote:PS (for the Noodlesoft devs): I originally built these rules on a MBA M2 w/Sonoma beta, and while the color tag issue was the same, I noticed that it actually reversed the color tagging on the Mini M1/Ventura, so the empty folders were tagged, and the folder w/files were clear. So weird Sonoma/iCloud/color tag glitch perhaps.

I have a similar Sonoma/iCloud/color tag glitch.
https://www.noodlesoft.com/forums/viewtopic.php?f=4&t=14996&p=38795#p38795

Only wonder if your Mac OS system language is english or anything another language? Wonder if the language setting could be part of this problem?