Find string between two different files-help with macro

[svancha]

Hello Alteryx Community,

I am very new to alteryx and I need your help.

I have two large files that I need to work on, so please guide me if a macro works better. I have attached two sets of sample data (Sheet1 and Sheet2) for convenience. The column "B" (String) in Sheet 1 has to be present in Sheet 2. And if column "C" combinations in Sheet 1 is found in Sheet 2 then it's "In" else "Out". I want my final output as Column "D" in Sheet 1 (In/Out). The 1st two or three values (DR....,AAA....) of column "B" in Sheet 1 could either be the column headers of Sheet 2 or the value under those headers. 

Sheet1: 

Sheet2: 

Looking forward for some help. Thank you all.

[SPetrie]

I have something that will give the expected result, but I made a few assumptions. Im not totally sure how to interpret the OR for the first expected result. I dont see AAABA or AAACA anywhere in the file, so I assume its just DR  B that is matching in that first record. Sheet2 has _ characters from column B in sheet2. DR__B would not match to DR  B so I substituted those with spaces to make the match.

If I interpreted this wrong, let me know and we can go from there.