Intersection curve with surface and body

Help says this should work, but it seems not to.

The Property Manager accepts my selections of land surface and body representing an excavation; a 3D Sketch is inserted at the foot of the Feature Tree; the cut face is visible in the graphic; OK is accepted by the PM; but when I Rebuild, the 3D Sketch and the cut face disapperr.

What am I overlooking?

SolidworksAssemblies