[CE U14] Problem with Modifying Shapes

I have a 3d shape where I need to adjust the vertex and pull it up higher.

There are two problems I am noticing.

1) The vertex will not move up...

2) My ACS changes when I push "E" to rotate my accudraw.

Here is a video of the problem.

certainty3d-my.sharepoint.com/.../EditGHLX-aROt8s-W356QYUBEaRK1PDWuwbUzOsSatxYsg

The DGN file:

*Dgn contains the line string element, follow along with the video to convert to a shape element and reproduce the problem.

ShapeBug.dgn