Nevermind, I have it working.
After echoing out the excluded forums variable to make sure it was populated, I realized my mistake.
I had selected a category to be excluded, thinking it would exclude all of the sub forums under it. So of course, I'd see all of the posts as unread, it was a category. Once I selected all of the forums under it, things were excluded as expected.
Thanks again and sorry about that!
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