Say we have this:
not local ... my_short ... = ... 2
The way to look at it is to separate out the "not" so it looks like this
not ( local:my_short = 2 )
If the local variable "my_short" exists and is 2, then do NOT use this dialogue entry. But if "my_short" does not exist, or it exists but is not 2, then (if all the other conditions are okay) use this dialogue entry.