CV Element Exists returns TRUE even when element doesn't exist

You wouldn’t use normal selectors (ie strict selector, fuzzy selector) you would use the CV selector. It’s built into the normal activities. Go to your project settings and to UI Automation Modern, and in the Targeting Methods - Desktop applications section turn on CV selectors:

Then in the normal activities - Check App State, Type Into, etc - when you indicate element it will generate the CV selector for you. No need for CV Scope and the special CV activities.