Thanks @scoob8000. I have done some testing and confirmed that this is the way Simple Automation works. It will not turn off the light when the restrictions are active.
You could try using the “Basic Rules” app which seems to behave the way you would like it to - turns off the light even if illumination is higher than your set level.
Also, there is this community app which I use for all situations where I need lights to go on and off based on sensors. It has the added benefit that it will dim before it turns off, so if you are still around but just not moving enough, you are warned before it turns off.