COUNTIF problem using a drop-down selection

Good evening,

I've been pulling my limited hair out trying to get a formula to work -- a formula that I thought would be easy. It's a COUNTIF formula that will not work for me. I attached a sample workbook with explanations about my formula goals, the actual formula that isn't working, and what the outcome should be (if the formula worked). There are three sheets in the workbook, with super-simple date.

My primary challenge is the drop-down box. I included all of the US states in the list, plus an "All" option. The "All" option seems to be tripping me up, given my other criteria (which I label in the attached sample).

I appreciate any help!