Solidworks interference detected

Hello guys,

I am facing a unusual issue in solidworks. while running mesh in simulation i am getting an error, atleast 2 bodies are interfering. but when I am performing interference check, it shows no interference. I have checked on the options while performing interference detection tool "show ignored interference, treat sub assemblies as componenets, include multibody interference".

Is this a bug. Have any one got same kind of issues?

For more clarification, see attached pic

SolidworksSimulation