Hey Michael,
I know this is an old post, but I just want to make sure I'm understanding this correctly. I'm typically all AB, so I'm on the Sysmac learning curve.
In your example the OnCondition output is set as a Reset Instruction (Similar to a OTU in Studio 5000) so it is turning the output to 0, so when it scans rung 2 the input is off. However in Rung 3 the OnCondition output is set as a Set Instruction (Similar to a OTL in Studio 5000) and turns the output to 1.
Thank you,
-Andrew