From the dgn you provided, it looks as though you are designing in your 3D view window. The horizontal geometry should be constructed in the 2D plan view, then the Quick Profile From Surface tool will work. I might be assuming a workflow you are not doing. Would you please tell me the exact workflow you did within the dgn you sent to create the horizontal, and then assign elevation to it? Also, please specify if you are in your 2D or 3D model.
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