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When all fault states of the entire system are present in one and the same node, they are by definition mutually exclusive (please note that states of a random variable are mutually exclusive) and we are dealing with a commonly used assumption of single fault diagnosis, i.e., that there is only one fault possible at any given time.
Diagnosis transforms naturally into multiple fault diagnosis when faults are present in more than one node. In that case, faults are no longer mutually exclusive and presence of multiple faults is theoretically allowed. No longer will the probabilities of various faults add up to 1.0.