The version number I have in is also matching what's showing up in this window as well.
Except that your version number is not in the required four-part dotted-decimal format.
The unanswered question is this: What's the value for the fourth part. Is it zero? If so, you need to specify it as v4.0.701.0
However, even then, with the PreRequisite and Applicability Rules you've defined, they create a logical conflict with the Installed Ruleset,
since the Prereq and Applicability Ruleset are ALWAYS TRUE, and they cannot be TRUE if the Installed Ruleset is also TRUE.
SO.... as previously suggested... build a package with real rules and try again.