Help processing sub folders and condition "Name is..."

I'm trying to add tags to sub-sub folders. The user guide has an example that I have followed.

I am using the "run rules on folder contents" with the condition "Kind is Folder".

It works if I and the rules get executed in every folder.

But, if I add the condition "Name is..." right after the "Kind is folder", all files get processed except the ones in that specifically named folder. That's exactly the other way around how I would expect. Inverting the condition doesn't change it.

It works only if I dop-in a folder which has that specific name. But not if that folder already exists and I drop a file into it. All other folder's contents get processed but not the one that I have named in the condition.

My question: How can I get it to go into every sub folder called "Project" in order to execute the rules there (but not in other folders)?

For applying the rules only to the files in the "Project" sub-folder, I am now using the condition "Path to file > contains > Project" in the actual rule. I have removed the condition "Name > contains ..." in the rule for "Run rules on folder contents". Now it works fine.

However, I am using the condition "Subfolder depth is less than 3" for performance reasons. It doesn't need to go further down. But this dosen't seem to apply (or I'm doing something wrong) because sub-foders down at 4 are still executing the rule of applying tags. (Haven't tested any further.)

Note that items in the top level folder are at subfolder level 0.