I can't reproduce this, Mike. Works fine for me: Have three existing walls, a fourth New. I'm viewing the model with the New Construction filter. Select the Zone Tool, click the New button in the Renno palette to make it be a new construction zone. With the inner edge auto-detect geometry method selected for the zone tool, I click inside the 'room' - and the zone is properly placed.
I wonder if you have an existing zone already displayed which is messing up the placement of the new zone? If the new wall has reduced an existing zone, then that zone should perhaps now be a Demo element.
BTW: thanks for adding your AC17 - but do update your actual profile which still reports AC 13: click the "Profile" text link towards the top right of the page to the left of "Log out".
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AC 28 USA and earlier • macOS Sonoma 14.7.1, MacBook Pro M2 Max 12CPU/30GPU cores, 32GB