I dont understand RULES machine.... this should only turn off fan between 11:30am and 9pm but its turning it off in the middle of the night
Also I don't understand why the conditions are unused ?
Because you aren't using them. 
Conditions don't do anything on their own just by having been created. You have to use them in an action (or conditional trigger). Think of that box like a bank (and also somewhere you can edit a condition you're already using somewhere else without editing or re-creating that action and also share the same conditions at multiple places within a rule).
The docs explain this, and I'd suggest a read to learn how Rule Machine works:
As written, your rule will turn off "Master Fan" any time "Master Bedroom Motion Virtual" turns off and stays off for 1 hour. If you want it to only do this between 11:30 AM and 9:00 PM, then an easy way -- though far from the only -- is to make your actions something like this instead:
IF (Time between 11:30 AM and 9:00 PM) THEN
Off: Master Fan
END-IF
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thanks for explaining... i updated it so it should work and I read the documentation... it is not intuitive
Intuitive would be define trigger (optionally add some conditions)
if all met perform action... instead they have conditions as part of actions.
Anyways much appreciated!
That's another option, too. 
They are called conditional triggers and are also explained in the docs.
There are many ways to do the same thing in Rule Machine. It takes some learning to understand them all. If this is daunting, your automation could have also been accomplished with Basic Rule and likely other built-in apps as well.
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Keep your trigger, drop the conditions, and make them part of a required expression (with an AND). Basically, if the time is in your range, AND the Fan is on, then the trigger is "armed/enabled" and can fire. - If either of the required items (fan on and time out of range) aren't true, then the rule isn't even setup to monitor the trigger event (no motion for 1 hr).
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