OSM Building not importing with any height even with assign default height selected.

I am trying to import an OSM with building information into a terrain. I have selected 3D and I have selected to assign the default height to the buildings when there isn't information regarding this. I've tried several times with no success. The buildings always show up as flat surfaces with no height. I am getting the message attached below. 
 

The turtorials I have seen show the OSM being imported into a terrain product with the buidlings assigned the default height. Is there a setting in Preferences that I need to change? Am I missing something?

 

I can import the OSM into a Site with the option to "Import 3D building geometry" as well as "Import 3D building geometry into building products"