You have set your desired language for subs to be English.
Since the audio track is also in a different language from your preferred one, Plex assumes, you don’t understand Hebrew at all and activates the “full” english subtitles instead.
The ‘forced’ subtitles you have in this file are in Hebrew, which is not your preferred language. So this track will not get automatically selected by Plex.
As for precedence… manually selected/set subtitles take precedence over the automated selection.
If you set the preferred subtitle language to English, this means, Plex will automatically select available English language subtitles. The subsequent settings are used to further focus what subtitles to select:
Manually selected -> no automatic selection
Shown with foreign audio -> uses only subtitles in your selected language flagged as forced, this is usually subtitle files that only contain subtitles for audio in a different language (e.g. Dothraki passages in Game of Thrones, Klingon spoken audio in Star Trek or the subtitles of a Mexican/Spanish spoken audio in an English language movie).
Always enabled -> this refers to the full subtitle in your selected language for the entire movie
If you simply tell Plex to show you forced subs you will end up with some videos showing you Japanese forced subs, some others might show you German or French forced subs.
Language and subtitle settings won’t work well if you don’t tell Plex in what language you want to see them. Subtitles need that context and Plex does not assume there’s just one subtitle (of any language) that’s set as forced because you knowingly picked it that way.
It seems the bottom line is to pick subs each time since I have about only one show that’s in a foreign audio.
Also, tell me, would Plex pick this sub if it were labeled in English (seems to be mislabeled, because it shows dialogs in English where foreign audio is spoken)?