Pattern up to reference not working properly

So I am modeling a piece of furniture I'm planning to make and am running into a strange issue with the pattern up to reference feature.

Everything is behaving how I expect it in the preview and initially when I finish the feature it looks good, but the feature has a rebuild symbol on it in the feature tree, and when I rebuild, the pattern shifts.

Picture 1 shows the pattern preview:

Picture 2 shows immediately after exiting the pattern command:

Still looks good aside from the rebuild stoplight on the LPattern3 feature.
Picture 3 shows after the rebuild zoomed in, the right corner is supposed to be coincident with the sketch point just next to it:

This is strange behavior and I'm not sure what is causing it. Any help would be appreciated.

I've attached the part file (Back Assembly Top Cap.SLDPRT) and the part file that is inserted into it (Spindle.SLDPRT).

SolidworksModeling And Assemblies