Assuming that the formatting is correct the syntax here looks good. It's hard to tell if spacing is correct though with the way that word/line wrapping formats things on the forum.
For the sake of clarity, the Rule side of the automation should ultimately look something like this.
WHEN:
{{irrigation_active_zone_1_status}} IsEQ off
AND:
{{irrigation_manual_zone_1_status}} IsEQ on
If this doesn't work then something is borked on the Action side of the automation.
