Combining a password strength meter with password rules is the sort of thing where most implementations are going to get it wrong. It clutters up the UI a lot, to the point of being too complicated for "average" users to understand.

I prefer seeing one system or the other, but not both.

If you have rules, don't use a password strength meter. Rules are going to be a binary result - "yes the password is good enough", or "no, this password is not acceptable" - which is represented by showing which rule(s) were not respected by the user, or a green checkmark.

A password strength meter can be used when there are no rules enforced, to let the user decide for themselves whether that red progress bar showing a weak password is good enough for their needs. The meter doesn't need to be binary, with red/orange/yellow/green stages. The only reason I don't like password strength meters in general is that there is no standard across sites/services as to what constitutes a strong password. One site will show "password123" as weak, while another will say it's fairly strong. Each implementation has its own arbitrary algorithm that is likely not representative of "true strength".