BOM Release Rule not validating on dependents in a Promotion Notice

I am following PTC's documentation, and have pretty much copied the exact BOM_RELEASE_RULE. The difference is only that we have not specified <objectContainerPath>.

The rule loads correctly into our Promotion Notice rule set. We have other rules within the rule set (attribute rules) that all work correctly.

However, the BOM release rule does not seem to trigger a conflict when a BOM component is obsolete. The component is not part of the PN.

Here is our rule:

<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE BusinessRule SYSTEM "standardX20.dtd">
<BusinessRule>
 <ObjectID>
 <localId>wt.businessRules.BusinessRule:158927</localId>
 </ObjectID>

 <key>BOM_RELEASE_RULE_RELEASED_STATE</key>
 <selector>BOM_RELEASE_RULE</selector>
 <name>BOM Release Rule</name>
 <description>BOM Release Rule ensure RELEASED State</description>
 <enabled>true</enabled>
 <updateIfExists>true</updateIfExists>
 <configs>
 <config name="targetState" value="RELEASED" />
 <config name="validDependentState" value="RELEASED" />
 <config name="invalidDependentState" value="OBSOLETE"></config>
 <config name="checkPredecessorRevisions" value="true"></config>
 <config name="collectionComponentID" value="COLLECT_ITEMS_FOR_BOM_RELEASE_RULE" />
 </configs>
</BusinessRule>

Here is our preferences:

Does the BOM Release Rule work in Promotion Notices?

What am I missing?