C2 has always struggled with OR, as OR just doesn't fit well with C2's primary mechanism of 'picking'. The problem here is both conditions are run, but that means that the 'on floor' condition has now picked no objects, so by the time the code reaches the action, no Players are picked. To prove this, add a sub-event that does a pick-all on Player, and move your action there. You'll see it now works.
I avoid OR generally, as it just doesn't work well when picking gets involved. Either split up the conditions, or work around the issue as explained here.