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Validation Logic Rules: can't select "independent (or)"

I've created a rule (if files doesn't exist) - I have selected the "OR" option, but it's showing up as an "AND". - I've tried deleing the element, recreating it... but the OR never sticks.

I'm running version 10.0.. but remember having this exact same problem with previous versions.

sometimes it works, sometimes it doesn't. Why!??!