Changing File Names In Subfolder-Yes I've Read The Sticky

I accidentally posted this in tips & tricks first so I am no posting it in support...
Hi there. I've tried to understand the subfolder thing and just can't get it working. I downloaded the rule from the sticky and did a test trying to add a color label to a file within a subfolder and it colored the subfolder. Where did I go wrong? The only modification I made to the downloaded rule was to add the color label rule.
What I'm actually trying to do is:
In Folder SHOW > In all subfolders regardless of name & for all files in SHOW and not in a subfolder > In subfolder A: File Example Name.pdf, change "Example Name" in the file name to "EN"
If I move the File into the top SHOW folder, the rule works. But I can not get it to work in any subfolders.
Also, and this may be a separate question, what is the different between the condition "any of its sub-files and folder" vs. the condition "the file or folder being matched" and then making the first action "run rules on folder contents."
Hi there. I've tried to understand the subfolder thing and just can't get it working. I downloaded the rule from the sticky and did a test trying to add a color label to a file within a subfolder and it colored the subfolder. Where did I go wrong? The only modification I made to the downloaded rule was to add the color label rule.
What I'm actually trying to do is:
In Folder SHOW > In all subfolders regardless of name & for all files in SHOW and not in a subfolder > In subfolder A: File Example Name.pdf, change "Example Name" in the file name to "EN"
If I move the File into the top SHOW folder, the rule works. But I can not get it to work in any subfolders.
Also, and this may be a separate question, what is the different between the condition "any of its sub-files and folder" vs. the condition "the file or folder being matched" and then making the first action "run rules on folder contents."