Thanks for taking time for playing!
So, this is one thing that I didn't have a chance to properly implement, which is an actual "reset" function, that causes the level to run again from the beginning.
Long story short, this breakdown is intended, as you basically will always end up with an "EXE" with 1-orange:2-blue combination; If there was a chance to make more levels and think things more thoroughly, the concept of "only words with an orange letter can be moved" would've stuck.
Consequently, this is a trap that was explicitly designed, because if you take the blue E from "EXE" to stick into "EXECUTABLE" instead of the orange "E" from EXE, you're hard-locking yourself out of solving the level, because "EXECUTABLE" now can never be activated, as it only has blue letters, and you cannot swap letters without a space available, so you're locked out of the solution.