From the CreationKit wiki:
Allow Cleared: If unchecked, "Cleared" Locations will never be selected for this alias. If checked, "Cleared" Locations can be checked, but uncleared locations will be preferred if available.
My research and test quests lead me to the conclusion that the "Allow Cleared" flag on Location Aliases is broken. Even if the flag is un-checked, the story manager still seems to allow locations that are marked Cleared into the alias. I notice this even in the totally unmodified vanilla game. Radiant quests often send me to locations that I've already cleared.
I'm working on a mod to rectify this but before I proceed too far I would like to know if there is some voodoo that I've overlooked in getting this to work, or if in fact it is just simply broken.
TIA.