I'll start with your solution because it seems the less complicated one 
Please see the screenshot below
I've gone halfway and I have no idea how to proceed.
Hi, I'm getting back to this as this is still not resolved.
Here's a summary:
In the mode section, I made a rule that the temperature/level of my living room lights will change by mode, but I don't want them to turn on automatically. I've set up a button on my Harmony Elite so that I could turn them off/on whenever I like and it works great. My problem now is that the lights are turning on automatically when modes throughout the day change. For example, the lights turned on today at 7AM.
I want to avoid this situation and make it so that the harmony button will be the only one that turns the lights on/off, and for the modes to continue and change (Not Turn on) automatically throughout the day.
If anyone can help me I would really appreciate it
If I understand your problem, you are looking to use a first rule that triggers on mode to set the level of a dimmer before the remote is pressed on you harmony, but not turn on the lights until you trigger a second rule by the harmony button press. For z-wave dimmers (at least z-wave), the expected / default behavior is that setting a non-zero level will also turn the device on so using default drivers, you can't do what you are after in that manner.
The solution is to not use separate rules but do everything in one rule (or using the "Button Controller" application). Within Rule Machine or Button Controller application, one of the Actions you can choose is to set the dim level by mode -- activate that on the button press and you can then do mode-dependent level settings within the rule.
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So you're trying to use the same button for both on and off?
You can do this using the Private Boolean function and an if .... then ... else conditional action. Private Boolean is a simple true/false boolean that exist for each rule in Rule Machine and which you can set or test. I've set up an example for you of how to use it so that you can use the same button for On and Off.
Anohter way is in the "if" action, you could also test like if (switches A, B, C are Off) then ... else ...
This may seem strange, I must be missing something. I don't see a "motion and mode lighting" app in the Built in apps.
Hubitat recently deprecated the old Motion and Mode Lighting app. It has been replaced by the new Room Lighting app. New users can no longer install the old app. Existing users can continue to use the old app, but if they remove it, they can not reinstall it (unless they restore an old backup file.)
Thanks!
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