Rice Theorem - Problem to understand and apply it
From Wikipedia:

Let S be a set of languages that is nontrivial, meaning

there exists a Turing machine that recognizes a language in S,
there exists a Turing machine that recognizes a language not in S.

Then it is undecidable to determine whether the language recognized by an arbitrary Turing machine lies in S.

It's the language (determined by the TM) that has the property, not the TM itself. Your first condition is not needed at all, and the second condition should state
&quot;$L(M_1')$ has the property, and $L(M_2')$ does not.&quot;
An example of application of Rice's Theorem might be the following statement. The set
$$S = \{&lt;M&gt; : \varepsilon \in L(M)\}$$ is undecidable. The corresponding TMs might be $M_1$ which only accepts $\varepsilon$ and $M_2$ which doesn't accept any words.
Your example is not correct since the property is trivial. $\emptyset \subseteq A$ for any set $A$, even an empty set.