Conditional Formatting

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I cannot understand what I'm doing wrong - I have two columns titled 'Owner First Name' and 'Owner Last Name'. There is a third titled 'Registration Type'

I have conditional formatting setup that if the cell is blank to turn it red. I added another condition that if the Registration Type is 'Partnership' to ignore and to not turn the cell red (we don't need this data for that registration type)

I have the rules setup the exact same for both columns, yet the Owner Last Name continues to show red. (ignore the blue, it's text box I put over sensitive data). Yes, the Registration Type on both those rows is set to Partnership.

This is the conditional formatting I have set so it's identical for each column, yet the Owner Last Name is still showing red.

What am I missing here?

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