@Christopher Reffner
There doesn't appear to be an issue with the rule you created. Did you recently create or modify the rule? It can take up to 24 hours for actions to run the first time and up to 48 hrs to complete if the policy was updated. The rule you have created is only for the base blobs and block blobs. Double check that the blobs you are seeing are not snapshots or versions and are indeed block blobs.
Hope this helps! If you are still facing issues let me know and we can work with you directly to see what might be causing this issue.
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