If you want to set up free shipping, you need to start by making a shipping method.
If you need help creating shipping methods follow this introduction guide.
The rules you're making only apply to the method being edited.
Create free shipping
Free shipping is created automatically.
Your shipping will automatically be free, when you for example add methods without rules. You can for example add a method called "Pick up at location" by not adding rules, this shipping method will automatically be free.
If you have a method with rules, your costumers will still be able to get free shipping, when a costumer exceeds the price or weight of your added rules, they will get free shipping.
Your costumes will automatically get free shipping by clicking on shipping methods with no rules or exceed the rules you have made for the shipping methods.