You need to clarify the type of the second tag, Archive is an action, not a tag type. You cannot have a separate tag stamped directly on a folder within the Archive mailbox is that's what you mean, as detailed here: https://learn.microsoft.com/en-us/exchange/security-and-compliance/messaging-records-management/retention-tags-and-policies#applying-a-retention-tag-to-a-folder-in-the-archive
Also, are you using Exchange Online or Exchange server, as there are minor differences in functionality?
In the example above, assuming #2 is a Folder-level or personal tag applied to a given folder, it will Delete all messages within the given folder, before tag #1 is in effect. Tag #1 will only affect items within other folders/unstamped items.
Lastly, the retention age is calculated based on the date item was created/received, not modified, with few exceptions: https://learn.microsoft.com/en-us/exchange/security-and-compliance/messaging-records-management/retention-age#determining-the-age-of-different-types-of-items