No. Excluded machines will not flow through to the triggered child deployments.
Unfortunately you are bumping into limitations of the feature. The Deploy Release step isn’t special from the point-of-view of the deployment page.
I completely understand the behaviour you are expecting here. And we potential could display the deployment steps from child projects, and allow including\excluding machines from them. One potential issue is that there is no limit to how deeply these can be nested. i.e. A project can have a Deploy Release step which deploys a project containing a Deploy Release step which deploys a project… But that’s just a UI issue.
I have created a UserVoice suggestion for this functionality, which I encourage you to cast a few votes for. I’ll discuss this with our team.
In the meantime, if you wish to include\exclude machines, you’ll need to deploy the child projects individually. Or remove the appropriate roles from the machines you wish to be excluded prior to deploying.
Regards,
Michael