Hey! There are a couple of things going on here, but in general this is not a bug.
In some initial steps when implementing Query Loop block, we had added the exclude argument, but while it’s kind of supported as an option(do it manually and have a workaround), is not officially supported because it will need proper handling and expose UI controls for it.
Having said that, this(exclude) and other arguments are ignored when we inherit the query from the template and that’s your case in the archive template(you have inherit:true).
The last thing to mention is the mismatch between editor and front-end. When we inherit the query from the template there is no supported way right now to get the arguments that we would have in front end(the final built WP_Query used) in the editor. So in essence what you see in editor is custom query that tries to match as match as possible the front-end. The reason for that is for example if we have a category template it will be used by any category in a site, so we need to make some decisions to try to match as much we can per template.
