So your current policy is and should do.
When you send a message
from yourmail@yourcompany
to foo@bar
and the subject line contains 1 or more occurences of "Status"
the message should be deleted and the notification should be sent.
In general this is exactly how it should work the only issues could be related to inbound and outbound or the order of content policies.
Do you have other Content Policies active? For example when you add a disclaimer and it comes first you wont apply this rule. So you would need to re-order your rules.
Can you confirm that the message is seen as outbound and therefore the policy can be applied like that?