The problem you are seeing is typical of alignments that create ambiguity because of their shape, ie when you have a right angle corner like you do here, a point on the inside of the corner can be at two different stations on the alignment so which one is correct from an automation standpoint.
The limit of the offset stops the corridor looking too far for the station for a point so that reduces the ambiguity - see the post / Video on modeling Horseshoe Roads - this is where we see the biggest problems where an alignment loops back on itself entirely - there are a few settings that help to control that
Click Here for the link to the post on Horseshoe Roads