Fence From File Selects Outside of Visible Elements

I am a 1 year MicroStation CONNECT Edition user (Version 10.13.01.01)

I am selecting my drawing using "Fence From File".  It is selecting outside of the drawing elements (cyan corners).  I have all my layers turned on.  Any ideas why?

Also, it is not letting me select Fence in the Print window.  Fence is grayed out.