@jhackney1972 wrote: I see no issue if I also add a Coincident constraint...
@TheCADWhisperer wrote: Redundant constraints should not be needed.
Agreed. Should it not in fact be impossible to apply the extra constraint (arc center to construction line) because the model is already fully constrained? (Just to be clear, you can add that constraint in this test file, but only because the rest of the sketch isn't fully constrained and the original constraint isn't working correctly.) An arc with two fixed endpoints and a tangency constraint at one end is already fully constrained.
I don't think the problem is with the behavior of constraints. The problem is that the wrong constraint is being applied by the UI. The arc endpoint ends up constrained to the bottom line, not the bottom line's endpoint.
Here's an example where the lines are Fixed and not Offset. The arc endpoint constraint is correctly applied and the arc turns black because it's fully constrained. You cannot then constrain the arc center to the middle line. If you try, Fusion 360 just says "the sketch is overconstrained." (Just to be clear, this is an example of what I would claim is correct behavior. The arc endpoint ends up constrained to the line endpoint, and then the arc is fully constrained. If you just draw two parallel lines, it also works correctly. It's only (as far as I know) in the case of Offset lines that it starts to misbehave.)
