Thank you for the file.
What you were encountering wasn't being conveyed very well in the information you provided as well as the limited screenshot. There was no clear visibility or explanation of what the actual chain was supposed to look like. Of course, with the file now available, it's obvious the issue you have run into, once you see the rest of the part.
Why it's doing that, I cannot say. My first question and suspicion; was this sketch imported from another program? Reason for that is that while I can inspect it and gather dimensional data from it, it's not allowing me to actually dimension the features. I thought the issue might have to do with constraints, but that's not the case.
While I can't tell you the WHY of what it's doing, I figured I could try to recreate the sketch using a method I prefer to use; Project. It's a handy little function, although it can get messy if there are loads of features to a part. Take a look at this screencast where I go through the process and end up with a 2D Contour that behaves as it should.
Seth Madore
Owner, Liberty Machine, Inc.
Good. Fast. Cheap. Pick two.