It started working again. I ran a check on it using Spotlight and Alfred to confirm or deny your thought that MS 365 wouldn't find it because it is online. I was able to find a file I saved today that matched my rule. And the rule fired as it was suppose to do. I didn't make any other changes...
Thank you for your response. It looks like the problem has resolved itself.
I have been a Hazel owner for several years now and it is one of two programs that I love and would not live without.