Not sure about that app but I use "Button Controllers" built in app. Also I think the same "Button 1 pushed" is doing 2 things , on and off. Should 1 be "held" ? You have the same button action doing 2 things. You could try changing the action to "toggle"
I agree on leaning toward Button Controller for this, and just set up the Button 1 Push there as Toggle this Room Light's Activator Device.
And then remove the "toggle when..." stuff in your RL Means to Activate Lights section, as well as the "Turn off when..." stuff in the Means to Turn Off Light section.
You do not need the button push OFF since you have Toggle in the Means to Activate. Toggle by itself will do what you want on its own.
Also, the suggestion to move the button rules to either Button Controller or Rule Machine would work fine too. Since you already have an Activator device created, you could just have the button toggle the Activator as it would accomplish the same thing.
I tried the button controller app, still not working. It works when I test it from within the app, but not when I push the button. I've included a screenshot of the rule and the button's settings page.
I guess never mind... I tried this with my aqara button and it works just fine. I mean, I'd love to know if my hue is broken or set up incorrectly, but at least something works!