Error - "Unable to create groove" when creating o-ring on face

I am trying to use the toolbox to create an o-ring face seal groove. Everything I try ends up creating an error. I created a 5" x 5" x 1" rectangular solid. No matter what I select the Solidworks toolbox o-ring groove wizard cannot create the groove. My o-ring wizard looks like this:

I notice that there is text that says "No selected diameter". There seems to be nothing I can select except the o-ring size in the list.

I have tried:

  • Just selecting a point on a face
  • Drawing a sketch with a point and clicking on that point while in sketch edit mode
  • Clicking on a sketch point when not in sketch edit mode.

I get the following two errors:

If I do not select anything:

If I select a arbitrary point on a face:

What's the secret sauce that I am missing?

SolidworksGeneral