Variants order is not respected when deciding which variant is to be used

How to reproduce it?
Create two variants which both would match. Add something into content of one of these so you could distinguish between them.
Now reorder variants, drag the one which is created second into first place. Go to your page and see which one was used. In my case it was still the one I created first.

Sorry, I cannot dig into it. That said, I find panels to be the most useful thing after sliced bread :)