Move action

I am using the Move action (https://wiki.keyboardmaestro.com/action/File_Actions?redirect=1) to move the selection in Finder to another place.
If I have an alias selected, then it moves the original.

Is this expected behaviour?

Generally, yes. Any time you reference an alias it is likely to resolve to the original file. Those file actions work through the system NSWorkspace and NSFileManager APIs, and mostly they just pass it on to the Finder (more or less).

You can use the shell mv tool to move just the source file (I believe).

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I will try when I am back at the computer.