@pendean wrote:
Did you forget to set PLAN command to match "current ucs" by chance? required to draw 2D objects like CIRCLE on the correct ucs/face of objects.
Not true for me. I set a UCS using the Face option, and I can draw things on that face without being in PLAN view in that UCS:

The issue is something else -- in their original image, note the UCS icon's Z-axis direction, and that the Circle under construction clearly does not have that Z direction as "up" and "down" relative to it, as one would expect.
@jdfnnl, can you post a [small] drawing exhibiting this behavior?
Kent Cooper, AIA