So my question: Why do the layer7 rules only work with connections over the router but not from the router itself?
Look at your script and look at which interface you are shaping on. Most likely you are shaping on the interface which talks to the lan. So the stuff destined for the local machine never sees the shaper
The only real solution is to add the IMQ device to the wan side and use this to effectively put something upstream of the machine that you can shape on
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