The Feature: "Extrude Along Path" cannot be created with current settings and geometry.

I am trying to extrude a circle along an arc but the Extrude Along tool won't let me do it. I get a message saying "The Feature: "Extrude Along Path #3" cannot be created with current settings and geometry" and nothing happens. I tried to extrude it along a straight line but still the same error appears. I also tried this exercise on different DGN file but without success.

I use the latest version of Microstation Connect edition update 3 (10.03.00.30).

Fortunately I have a copy of old Microstation v8 2004 where that tool works just fine. Is there a bug in Connect Edition or am I doing something wrong?