The default state should not have a selected content item. It should be empty. The component will use the data source that was selected when you set-up the component. The UI is a little misleading.
Select your default content when you drop the component on the page. Then set-up your personalization conditions. It should work then.
You can use the default rule to set a default data source for your rendering or hide it if you want. also, try to clear the data source field on rendering control properties:
You can use experience editor rendering web button to test the two conditions you have as you can see in the following screenshot:
Also, you can use explore mode to try testing, I noticed you are using a country personalization, so make sure Sitecore GeoIp service is working fine, double check if you should use country name or country code in your rule condition.
Another suggestion is to use a different OOTB personalization rule to identify if this issue is with the country rule.