Cannot select Hole Wizard holes when making smart component

I'm trying to make a smart component from a wood dowel that also has the holes that will need to be drilled to allow for it. I made the part, made a throw away assembly of the part, started to make the smart component but when it tells me to choose the features that I want to include I cannot select the hole wizard holes. The help menu says that HW holes are prefectly fine to use as a feature, but the process of making a smart component says otherwise. Anyone else having trouble with this?

SolidworksParts And Features