A visibility conditional using a custom state may not appear to work if there is a show / hide workflow that is doing something similar. To provide some context, conditionals read off of changes to the visibility property. In this case, because the element starts invisible, and the conditional changes the visibility to be unchecked, we're not picking up a difference in this property, and thus we're not showing/hiding the element. On the other hand, if we had a condition which set the checkbox to true, and then had a condition which triggered afterwards and set the checkbox to false, we would pick up the difference and hide the element.
When constructing logic to show and hide elements, please be sure to keep this precedence in mind.