So for the proxies, there are two things that might be referred to as their “Area”. There’s the Bermuda sensor, named “Area”, and that will be the one you are seeing bouncing around. For moving devices (watches etc) you use this sensor for automating against, as it gives you an idea of where it is being detected. But on a proxy, it serves no purpose and should not be being used by anything unless it’s doing something rather unusual.
The other “Area” is the actual area assigned to a device through the configuration in HA. This setting is not changed by Bermuda, but for proxies Bermuda uses this setting to understand what area each proxy is in.
So the area sensor is a bit of a nonsense for a proxy device, since it will change based on whichever other proxy thinks it is closest to. In that context, it’s a bug because it can cause confusion, and isn’t conveying anything useful. You shouldn’t be creating any automations against a proxy’s area sensor unless you are doing something interestingly unusual.
The device’s actual “Area” is static, defined by the user when configuring the device in HA.
I would suggest disabling the Area sensor on your proxies if it’s causing confusion, and making sure you only refer to the actual device area if creating automations - however most automations would only need to refer to the area sensor of bluetooth devices, not of the proxies.
A few screenshots might help clarify:
So essentially, you probably shouldn’t be using the proxy’s area sensor for anything.
As an aside, currently it’s only the Shelly’s that show up at all as a bermuda “device” at all, by default. This is because they are the only proxy that also sends out bluetooth advertisements, hence they’ll appear in bermuda’s “Select devices” drop-down. So the area sensor reflects their role as a “device” as opposed to their role as a “proxy”. This isn’t directly relevant to your issue, just pointing out some extra context. ESPHome proxies are getting this capability too, so they’ll behave similarly in future, and I’ll be adding some logic to make this a bit less confusing in future, but it’s not a “functionality bug”, just one of confusion, imo.
Does this answer your issue, or is there some follow-on affect that is being caused by this? If you are experiencing tracked devices bouncing between areas then note that this is not the cause of that - only correlation, rather than causation