I don't mean to be nitpicky, I'm just trying to help with understanding the issue and solution.
The initial value is set by each point's location within the block definition. In the file you posted above, the initial 'base X' values were not 1,11 and 1. They were -2'6" for all three of your input parameters. The positions of the points within the block were; Left Pt (-2'6",0), Style Pt(-2'6",-6") and Right Pt(-2'6",-12). Your 'Combine' lookup table is looking only at the X values of each. Because of this, in order for the lookup to work when the block is initially inserted, the base x value (position on the x axis) of each of the input points must match the initial visibility state. The initial visibility state that is displayed when the block is inserted is the one at the TOP of the list of visibility states (it is not the state that was current when the block was saved). The visibility state that is at the top of your list of visibility states is A-A. In the Combine Lookup table, the X values required to display the A-A visibility state are 1, 1 and 1. The mismatch of having your three points at x=-2'6" within the block and the initial visibility state matching x=1 was causing a state within the block that did not match any row in the Combine Lookup table and because of that, the initial state of the block was 'custom'. When each of the three single lookups were changed the position of their corresponding input point was changed. Because x=-2'6" is not a value on the Combine Lookup table for any of the three input parameters, when the block was initially inserted, all three single lookups needed to be changed in order to result in an input value that was on the Combine Lookup table. Once that was done, the block started working correctly.
As mentioned, the easiest solution, IMO, was to change the location of each of the input point parameters within the block so that, for each of them, x=1. I selected all three and moved them so that their new positions within the block were; Left Pt (1,0), Style Pt(1,-6") and Right Pt(1,-12). Those thee x values of 1 then match the Combine Lookup values for the A-A state which is at the top of the visibility states list and, Bob's your uncle, the block then works when initially inserted.