Error finding existing records, finds incorrect record

I set up criteria to find existing records when moving records from HubSpot to NetSuite and there appears to be an error in how it's identify records. I have 3 levels of match and if it finds a match on any of them, it should use that record, but it's not working that way for one record. The levels are first match on NetSuite internal ID, next on Hubspot ID, next on company name and subsidiary. 

In my problem test, I have a record that has an internal ID on the input data and therefore should match that record on the output, but instead it's matching against a different record that has the same company name and subsidiary. I confirm the record exists in sandbox with the specified internal id and is not inactive. Yet, the record found was created later and is marked inactive.

Also, i'm not sure why I have to have the lookup criteria nested like I do in the attached snip. I feel like it should be two filters and a group with ORs between them, but that doesn't work for a different test for some reason, only this nested way does.