Mixed Conditions Not Firing

Configuration
1

Having trouble with a mixed condition. At said time, if bathroom lights are OFF and person A or person B is home, then fire.

Code below is not firing. Have tested it with out conditions and it works fine. Any thoughts?

- alias: Bathroom Lights
  initial_state: true
  trigger:
    - platform: time
      at: '04:50:30'
  condition:
    condition: and
    conditions:
      - condition: state
        entity_id: group.lights_bathroom
        state: 'off'
      - condition: or
        conditions:
          - condition: state
            entity_id: 'person.a'
            state: 'home'
          - condition: state
            entity_id: 'person.b'
            state: 'home'
  action:
    - service: script.bathroom_lights
2

Try it like this:

  condition:
    - condition: state
      entity_id: group.lights_bathroom
      state: 'off'
    - condition: or
      conditions:
        - condition: state
          entity_id: 'person.a'
          state: 'home'
        - condition: state
          entity_id: 'person.b'
          state: 'home'
3

Thank you!