Hello @tmchow, I have the exact setup as you, the only difference it the sensor. I just tested mine and if I turn off the switch GE switch on the wall that automation runs regardless.
Here is the snip, hope it helps.
[{"id":"29f88c6.8763174","type":"switch","z":"5717166.f78c0e8","name":"The Switch","property":"payload","propertyType":"msg","rules":[{"t":"eq","v":"on","vt":"str"},{"t":"eq","v":"off","vt":"str"}],"checkall":"true","repair":false,"outputs":2,"x":650,"y":120,"wires":[["dccd175b.be0ce8"],[]]},{"id":"53323b7.affa7c4","type":"server-state-changed","z":"5717166.f78c0e8","name":"Livingroom Motion Sensor","server":"f0aa0465.fa7ce8","entityidfilter":"binary_sensor.living_room_motion_sensor_sensor","entityidfiltertype":"substring","haltifstate":"","x":150,"y":120,"wires":[["ed621e7e.5545"]]},{"id":"10dc07aa.bb7068","type":"api-call-service","z":"5717166.f78c0e8","name":"Off","server":"f0aa0465.fa7ce8","service_domain":"switch","service":"turn_off","data":"{\"entity_id\":\"switch.entrance_light_switch\"}","mergecontext":"","x":1270,"y":120,"wires":[[]]},{"id":"60fef4a0.5e252c","type":"api-call-service","z":"5717166.f78c0e8","name":"On","server":"f0aa0465.fa7ce8","service_domain":"switch","service":"turn_on","data":"{\"entity_id\":\"switch.entrance_light_switch\"}","mergecontext":"","x":1270,"y":80,"wires":[[]]},{"id":"dccd175b.be0ce8","type":"api-current-state","z":"5717166.f78c0e8","name":"Foyer light","server":"f0aa0465.fa7ce8","halt_if":"on","override_topic":true,"override_payload":true,"entity_id":"light.livingroom_dimmer_level","x":850,"y":120,"wires":[["7a316926.df40b8","60fef4a0.5e252c"]]},{"id":"7a316926.df40b8","type":"stoptimer","z":"5717166.f78c0e8","duration":"59","units":"Second","payloadtype":"str","payloadval":"off","name":"","x":1070,"y":120,"wires":[["10dc07aa.bb7068"],[]]},{"id":"ed621e7e.5545","type":"time-range-switch","z":"5717166.f78c0e8","name":"Turn light on if movement","lat":"32.8614870","lon":"-97.2787370","startTime":"20:00","endTime":"06:30","startOffset":0,"endOffset":0,"x":410,"y":120,"wires":[["29f88c6.8763174"],[]]},{"id":"f0aa0465.fa7ce8","type":"server","z":"","name":"Home Assistant","url":"http:\\\\192.168.2.999:8123","pass":"PSW"}]