There are different ranges that both include B2 in the example file. The rule highlighting a row depending on C cell doesn’t affect B2, because the rule affecting B column is created first. With multiple overlapping formatting rules, it becomes very unpractical to keep deleting and adding back the rules just to change priority.
Weird thing I noticed is, the formatting rules will execute in the order that they are added, but they will be listed alphabetically anyway. This makes even reading the priority from the list impossible.