NX Cutting a Vertical Wall Using a Floor Wall Operation

The radiused corner of a block needs to be milled off. 

A 2D Profile Wall without Floor operation is selected and the 3D IPW option is set so that the tool only cuts where material is still present.

Notice the remaining material in the picture below.

The operation is set up and generated. A message is reported that the Part cannot be faced at any level. What settings need to be changed to get this to work?

To get this operation to run go to Options -> All other Parameters and  turn on the Extend Floor to Blank Outline and the Cut Pattern Follow Part.

Notice that the tool only cuts where needed.