Equal Space Points tool issue

I'm attempting to place a series of 2D points using the Equal Space Points tool and upon doing so, keep receiving the "Element off design plane" error message immediately followed by the all too common program crash. I noticed it created a 3D model in my dgn even though I have the "Want 3d Point" field disabled. I ran through the motions a number of times to ensure I wasn't accidentally attempting to generate 3D points and can't figure out what's causing the issue. Below are screenshots of my tool settings and Power InRoads version number. Any help is much appreciated. Thanks