Not 100% sure of the context in what you are using this but I did seem to be able to get the template to work in SS2. I dropped the origin on my geometry and made the targets similar to your Z of a feature for one and XY of a feature for the other each one did solve when the target feature was within the targets range.
I did notice your vertical construct will not go below you Horizontal Vertical control, i.e the way the template is setup it will only see upward of the 0,0 also it will only seek within the 20 Unit range because the infinite toggle is not on. In summary if the target point is in the top left quadrant of the template it does seem to solve.
I did not have a chance to test his in SS3 but in attempting to isolate issue it is good to test under different possible scenarios.