Dear Son,
I am not seeing anything counterintuitive here.
edgeR gives you a P-value of 0.02 for this gene, which agrees perfectly with your intuition that the gene looks differentially expressed if considered in isolation.
The logFC is reported to be 0.99, which looks pretty similar to the change in average logCPM from group A to group B. This all seems as expected.
The reason for FDR=1 is that, given the number of genes in your experiment and given the variability in your experiment, you could easily fish around in the data to find a gene that looks as DE as this one, even if there
were in fact no truly DE genes. This is the difference between testing for DE for one gene in isolation, versus adjusting for multiple testing over thousands of genes.
In general, you should not expect a gene with a modest p-value like 0.02 to be chosen as significantly DE after adjusting for multiple testing over tens of thousands of genes.
Best wishes
Gordon
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