Connie,

That is a “Descendant of” term, not a “Descendant Generation” term. Include Subject is checked, so the subject (#2 above) will be selected as well as his descendants. Similarly, Include Spouses is checked, so the spouses any selected person—including the subject and the subject’s descendants—will also be included.
You can read about the terms here: https://www.tmgtogedcom.com/en/filters.htm#term-list
John Cardinal
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