If you have the Condition Type of the project set to Automatic, then the Condition of the project is determined by the project's Progress Status. The project's Progress Status is in turn figured based on the progress of the tasks on a project. (At least, that's the simple explanation that I used when I taught Workfront classes.)
Progress Status of a task is calculated based on the relation of its Planned Completion Date to the date types (Projected, Estimated, Actual ... and task constraints factor into this). This is calculated automatically by Workfront, so there are not settings to control this.
This article has some details about project Condition in general: https://experienceleague.adobe.com/en/docs/workfront/using/manage-work/projects/manage-projects/proj...
And this article explains how the project Progress Status is calculated: https://experienceleague.adobe.com/en/docs/workfront/using/manage-work/projects/plan-a-project/proje...
Info about task Progress Status and how its calculated: https://experienceleague.adobe.com/en/docs/workfront/using/manage-work/tasks/task-information/task-p...
Of course, you could set the Condition Type of the project to Manual, so then project managers could manually adjust the project Condition as they needed.
