Feb 28, 2023
Great question! This comes down to the 2nd condition in the Back Door Criterion as stated here. Namely, the set {Z_i} must block all back door paths between X and Y.
The set {Z3} does not satisfy this condition since it does not block the path X<-Z1->Z3<-Z2->Y since it is a collider and thus conditioning on it "unblocks" this path.