Why PolyLine behaves unexpectedly?

I have some drawings that originally were drafted in Autocad. When I use PolyLine to draw a line followed by an arc the software behaves inconsistently. If the PolyLine is drawn starting not from an entity it behaves as expected. If I start it from say a midpoint of an entity the arc does not follow the direction of the line (see sample attached). Any Idea how to fix this?