I see Neil has solved your problem (I didn't see his VI), but just to answer your question - Replace the select VI with a case structure and it will be clearer. The loop does an AND or an OR, not both. As long as the SR is T, the result needs to be ANDed, but as soon as both are T, the SR turns to F and then the result needs to be ORed, so as long as one of them is still T, you will get a T.
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