How to Sort Based on Set being Relation Type Versus Object Type

Im confused why in this set up Im not able to get “Area (SP)” to show up in my search.
Here is a video showing what Im trying to do. Thanks for any insight.

If you query by object types you’ll only get those objects to show up in your set. It’s basically the same as querying your whole database in the set and then filtering by object type by that type. This was until recently the only way you could query sets.
Recently they add the ability to query by any relation, so now you can have multiple object types in one set.
So the reason why Org Initiatives don’t show up is because you are only querying Org Areas in that set.
So in your first set, your query is the are relation. Presumably all of those objects contain that relation so that’s why they are showing up.