Well, that was fun to track down.
There are 2 issues:
1) The generic model family has a masking region placed over it in plan view. When you use a material tag it will reference the material under the point of the leader. This allows you to use multiple material tags on 1 element. But when a masking region is used, it tries to read the material of the masking region but cannot find a value.
2) your material parameters are incorrectly assigned. In the family the material is using the "Box Material" parameter, but the acoustic ceiling tile material is applied to the "Box Material 2" parameter.
I've fixed those issues by deleting the masking region and re-assigning the material parameter.
I've attached the files below for you to have a look at.