Here is another question... I have now put the code from local script into a script and it won't work for some reason.

Output(no matter the range):

Not in range!

Expected output(when in 10 studs radius):

In range!

If you are confused why is the "while true do" instead of the Tool.Equipped function is because I put another separate script that activates this one under here when the tool is equipped.

while true do
	local playerChar = script.Parent.Parent
	local player = game.Players:FindFirstChild(playerChar.Name)
	local myTorso = playerChar:WaitForChild("HumanoidRootPart")
 	local myHumanoid = playerChar:FindFirstChildOfClass("Humanoid")
	local Tool = playerChar:WaitForChild("Cuffs")
 	local EveryTime = player.PlayerGui.Every

	function findTarget()
		local dist = Vector3.new(10,10,10)
		local target = nil
		for i,v in pairs(game.Workspace.Dummys:GetChildren()) do
			if v.Name == "Dummy" then
			local human = v:FindFirstChildOfClass("Humanoid")
			local torso = v:FindFirstChildOfClass("Part")
			if human and torso.Name == "Torso" then
				if human.Health > 0 then
					if Tool then
						local TorsoMag = (Tool.Position - torso.Position).magnitude
						if TorsoMag >= dist then
							dist = TorsoMag
							target = torso
							print("Works!")
						end
					end
				end
			end
		end
		return target
		end
	end
	
	while wait(0.001) do
		local torso = findTarget()
		if torso then
			EveryTime.Enabled = true
			print("In range!")
			EveryTime.Time.WeTouch.MouseButton1Click:Connect(function(playerY)
			if torso then
				if script.Parent.Parent == player.Character then
					torso.Anchored,torso.CFrame=true,myTorso.CFrame*CFrame.new(0,0,-6)
					wait(0.001)
				end
				else
					local targetS = game.Workspace.Dummys:FindFirstChild(torso.Name)
					targetS.Torso.Anchored = false
					print("Not Humanoid")
				end
			end)
		else
			print("Not in range!")
		end
	end
end