Since the OSR bit (B3:0/0) is only on for one scan you won't see it directly but it should have effects. Which are not happening?
1. A resetting of the accumulator of T4:0
2. The latching of B3:1/1 if input I:0/10 is made (or if it isn't then I:0/11 is also not made - which turns on B10:0/0) and I:0/8 would have to be false else it will immediately unlatch B3;1/1.
It may not be relevant but in the project you supplied, if it was saved while running, then T4:0 could not run so you wouldn't see the effects of a reset. Also I:0/8 is true so you wouldn't see B3:1/1 latch.