SMART FASTNERS ALWAYS RESOLVE IN PART

My smart fastners always resolve inside the part.  This happens on every assembly I make.  It's some issue with the toolbox that I can't find.  I've uninstalled the toolbox, reinstalled solidworks, and just can't get it to work.  Does anyone have an Idea of how to correct this?  A picture of this is attached.  Any help would be appreciated.

SolidworksToolbox