Annoying compound path Appearance vfx inheritance behavior

Question

When using the pathfinder to exclude overlapping shapes from another shape, the base shape will inherit the visual fx applied to the overlapping shapes. How can I prevent the "bottom" (base) shape from having the same vfx?

Steps to reproduce:

1. Draw a large random shape with corners using the pen tool
2. Draw a small rectangle contained within the blob
3. Add Appearance > Stylize > Rounded Corners to the rectangle
4. Use Pathfinder > Exclude with both shapes selected
5. Note that the blob/splat inherits the rounded corners vfx

How can I keep the rounded corners on the rectangle, but lose them on my "random shape"?

Answer 1

Select the rounded rectangle with the effect and choose Object > Expand Appearance from the menu.

If the rounded rectangle has a stroke, you need to also choose Object > Expand after expanding the appearance.

Then proceed with your Pathfinder operations.

Note: This "bakes in" the rounded corner effect so it's no longer "live" and adjustable. However, there's really no other way if you use effects.