I think I've fixed it! Please bear in mind that I'm not sure of what effect you were trying to achieve, but it definitely does some good enemy AI type stuff now... The fix I found involved combining the enemy conditions into two groups, one For Each Enemies / IsAlert and one For Each Enemies / IsAlert(not).
I've come across similar logic inconsistencies as this in the past in C2 and they are always infuriating to figure or work-around (most have been my own doing, I must confess!). I thought what you had should have worked but I suspect C2 didn't like the multiple checks of each state (although my version uses 2 check loops of each Enemies group).
Here's my edited Capx so you can see what I've done. I haven't commented it but the group amalgamation should be kind of obvious. Hope this helps!
Well...it seems to work for a little bit, besides the fact that they won't rotate when they are patrolling, but if you alert a few of them and then go hide, they all simultaneously stop moving completely, patrolling or not.
I'm perplexed that it even works, considering the part where you have the "is not alert" loop as a subevent to the "is alert" loop...