I totally understand your examples, but I'm not really talking about first or last touch attribution. I'm talking about the default dimension with no attribution. My question is what I would expect in the same session (non attributed) metrics. If hit 1 is Affiliate, but hit 3 is Direct, and I have override checked, should my same session (non attributed) channel be Direct or Affiliate?
As you can see in my earlier image, it seems like it overrode hit 1 to say Direct even though at the time hit 1 was Affiliate. So I really want some official confirmation of how that works. The link on the ? mark sends you to a dead web page so that's no help.
Somewhat related, it does seem that this setting causes last click attribution to die. Our non-attributed metrics essentially match any and every last touch attribution model rendering them useless for additional analysis.

And I've attached this report suite's direct rules (at the bottom of the processing rules list).
Hey @JayGr, The default ‘Marketing channel’ dimension functions identically to the ‘Last touch channel’ dimension only, so in a way, you are looking at the Last Touch Channel report. Yes, if hit 1 is Affiliate, but hit 3 is Direct, and you have override checked, in the same session channel would be overridden to direct. We can take a more deeper look of your setup and report, if you can log a support ticket to and we can cross validate this with the backend data as well and share more detailed analysis.