Make Rule2 have the highest priority, lowest value of 0, to ensure it will be processed.
Note: The Priority parameter specifies a priority value for the policy that determines the order of policy processing. A lower integer value indicates a higher priority, the value 0 is the highest priority.
Reference:
https://techcommunity.microsoft.com/discussions/microsoft-365/dlp-policy-order/2197427

Explanation:
Box 1: Yes
Note: Key tasks of the SharePoint admin
Here are some of the key tasks users can do when they are assigned to the SharePoint admin role:
Create sites
Delete sites
Manage sharing settings at the organization level
Add and remove site admins
Manage site storage limits
Box 2: No
File1.text contains 3 IP addresses.
Box 3: Yes
File2.docx contains only 1 IP address.

Explanation:
Box 1: User1, User2, and User3 only
* User1 - Yes
User1 is Global Administrator.
A Global Administrator in Microsoft 365 can be added to a priority user group.
Priority User Groups:
These groups are often used to grant specific access or prioritize certain users. Global Administrators can add themselves or other users to these groups.
* User2 - Yes
An Insider Risk Management Analyst can be added to a priority user group.
* User3 - Yes
Insider Risk Management Investigations can be associated with or scoped to a Priority User Group (PUG).
* Group1 - No
You cannot directly add a security group as a member of a priority user group.
* Group2 - No
Box 2: User2 and User3 only
* User1 - No
* User2 - Yes, User3 - Yes
Instead of being open to review by all analysts and investigators, priority user groups might also need to restrict review activities to specific users or insider risk role groups. You can choose to assign individual users and role groups to review users, alerts, cases, and reports for each priority user group. Priority user groups can have review permissions assigned to the built-in Insider Risk Management, Insider Risk Management Analysts, and Insider Risk Management Investigators role groups, one or more of these role groups, or to a custom selection of users.
Reference:
https://learn.microsoft.com/en-us/purview/insider-risk-management-settings-priority-user-groups

To prevent a specific user from using M365 Copilot to summarize content with a "Highly Confidential" label, while allowing them direct access, you use a Microsoft Purview Data Loss Prevention (DLP) policy targeting Copilot, configured to block processing of that specific label for that user, without removing their underlying file permissions. This DLP policy intercepts Copilot's attempts to use the labeled content for summarization, effectively removing the content extraction right for Copilot in that scenario.
How it Works:
The DLP policy overrides Copilot's ability to extract and summarize content from files with the
"Highly Confidential" label when that specific user prompts Copilot.
This doesn't remove the user's direct permissions to open, read, or edit the file; it only stops Copilot from using it as a source for summaries.
This method leverages Purview DLP to create fine-grained controls over what Copilot can process, even when standard permissions allow access.
Reference:
https://learn.microsoft.com/en-us/copilot/microsoft-365/microsoft-365-copilot-privacy