Pricing Discount rule precedence

Summary:

We have a requirement of Discount rule precedence to work irrespective of discount list is configured for Item or Item Group (All Items) Level.

1. Client has one discount rule for a combination of Item Group and Customer and that's set at precedence 6 in the discount rule.
2. One of the specific items in that Item group has another rule set at precedence 7 in discount rule and this is item specific discount.

As per precedence rule, the system should first fulfil precedence 6 but it picks up item specific discount in the above example.

But we observed that the system skips precedence 6 and picks precedence 7. Is that an intended behavior? Trying to understand whether Item specific discount rule gets the highest priority irrespective of what the discount rule precedence is set.