What you are missing is that when you turn off the Kitchen Overhead lights, that will also turn off the mode lighting rule and cause them to not change.
No, the issue is how you are interpreting the functionality of the app. If what you describe is what you want, you have to do that with Rule Machine.
No one has access to the Hubitat apps but Hubitat. No one can "fix" this but them. But mode lighting is working how it was intended to work.
You do not need to create a lot of scenes, you would just need to create a group. If you want all the lights to function as a single unit, create a group so they can be controlled together. Then you wouldn't need to sue the off function of Mode Lighting.