Out[2] is what I would expect, because “Apply always effectively constructs a complete new expression and then evaluates it.”.
In Out[1], Plus seems to be evaluated before Apply takes effect, which seems incorrect.
If it is correct, how is it explained?
Thank you Ilian, that is clear. I think the phrase “and then evaluates it” in the help text of Apply is not very clear, because in the standard evaluation procedure the leaves are evaluated first.