Smartthings uses the word “mode” to apply to two completely different things.
The original mode is a “behavioral filter” like home/away/ and is used to control when routines and smart apps run. That’s the one that is referred to within SmartLighting. You access your modes under Location in the mobile app.
Then there are the armed states for Smart Monitor: armed away/armed home/disarmed.
At the present time, the SHM armed states are not an option in Smart Lighting.
They are available as either a “if” or a “that” in the custom smart app, rule machine, if you want to use that one instead.
But your current logic is based on changing the location mode, not changing the SHM armed state. So that’s probably why you’re not seeing the results Results you expect.