Hi, thanks for posting!
This should work and may be a bug. Would you mind opening a case with Support so they can investigate the data pipeline further? Here is their contact page.
I did try to reproduce and it works as expected for me. The attached screenshot filters US states first to those that start with "M" then to those in the Northeast, and it shows "Maine" and "Massachusetts". I also tried using the extent of another dataset. Here's the full data pipeline if it's helpful, maybe there's a difference between our input datasets or tool configurations.
