That doesn't mean it is the file rep that is at work.
I made the comment on it 'currently only working on downloads, based on what one of the avast developers said in a previous post.
The autosandbox process is controlled in the first instance by the file system shield (FSS), the suspect.exe file is scanned before it is allowed to run. If it were infected, it could/should be detected by the FSS, so one reasonable thing in its favour is it hasn't had a definitive detection, but requires further analysis.
However, the FSS checks other things amongst those a) is the file digitally signed, b) its location and what it does (this is done in the emulation check). these can trigger a suspicion and it is this suspicion that results in the recommendation to use the autosandbox.
If the Fire Rep is now enabled on the system I would expect to see a File Rep pop-up, like that on the web when downloading, image1. If the user opts to download it is then analysed in the autosandbox, image2, followed by the result of that analysis, image3.