Unfortunately I don’t use win8.x so I don’t know if default accounts are limited user or not.

The “Restore factory defaults” are different to the Repair as the one reverses changes that you may have made to the default settings, whilst the Repair also checks integrity and doesn’t reverse setting changes that you may have made.

The Red exclamation mark, I believe is telling you that although you have an exclusion for that file, but it doesn’t exist in that location. So you would need to check if that file is present in that location, if not then you can delete the exclusion.