Leaving the Confidentiality field to 'Not set' means that no value is associated to that field. In other words, the resulting report will not exclude the other confidentiality values, it will rather target all issues. The following workaround requires a bit of time to set up the fields accordingly, but it can still come in handy. It would consist in creating a custom attribute and integrate the following approach in the workflow.
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In the Project Settings page, create a custom attribute named 'No confidentiality', and then chose the 'Predefined value'.
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This allows you to add a value named 'Visible to all':
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Using the Multi-Edit function, you can now associate this value of ‘Visible to all’ to all the issues that you want to target:
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In the Reports page, using the filter, you can now target only the issues that have this new attribute/value, excluding all others.