A Turning operation will not post when a turning tool is set to 0 degrees but will when set to 90 degrees. The post is a Mill Turn post.
When generating output the post was not switching to the linked turning post. The output was coming from the mill post. The mill post was reporting an error because it can only output motion with the tool axis along the Z+ axis. The XZC Mill by itself is just a mill post that produces output in terms of XZC. In Post Builder the 'Machine Tool -> General Parameters -> Machine Mode' will need to be switched from XZC Mill to Simple Mill-Turn in order to get the mill post to switch to the linked turning post.