Hi Laura,
Thanks for posting! Ian Taylor used this option 3 in a recent assessment he was lead on and we found that the same behavior shows up when running that model with 3.30.14.01. This is a bug, but was not present in version 3.30.13.02 and has since been fixed (I checked that it was fixed in 3.30.16.02). I'm not sure exactly when the bug fix occurred, but will report back if I learn more.
So, the fix to this issue is changing the version of SS, as there is a bug for 3.30.14.01.
Thanks,
Kathryn