Wow...thanks for the assist. One must remember to read. Sigh.
So I found out that the @domain was not correct -> fail!
Adding @domain to existing (from people or public group) causes the rule to be read as this person AND the domain which => fail!
So I removed the person and added the correct domain as per @Carnival-Boy and ta-da it works like it should.
I have been using Outlook since 2000 and never have created a blank rule like @Carnival-Boy suggested. It was probably the first time I saw Stay Organized or Stay up to date in the Rules Wizard too! I have always right clicked an email to create a rule!
Thanks again on the assist. I can now trim down my rules.