This seems like a simple setting. I can see that the condition is working because the background changes, but the image is just stretching instead of repeating like the settings tell it to. I’ve been playing around with changes and it doesn’t respond to any of the controls that are supposed to make the image repeat.
I tried building a group from scratch and it worked here. The default background is a flat color and the condition switches to a tiled image background
So then I tried going back to my problem group and reversing its logic. I found a workaround; the default background is a tiled image and the condition switches to a flat background.