New Exclusion of up to $10,200 of Unemployment Compensation

https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation

Does this rule apply to dependent children unearned/unemployment income? Is parent income not taken into account when applying this rule? What if parent income is more than the AGI limit of $150K to exclude $10,200 amount?

I noticed that while filing return for my kid who has unearned income greater than $2,200, the schedule 1 line # 8 entry is UCE (unemployment compensation exclusion)  with a negative amount that offsets unemployment compensation from line #7.

Form 8615, line 6 is showing parent income correctly and the children is claimed as dependent.