Why do I have to subdivide members when a node intersects to transfer loads properly?

I'm wondering why I am unable to have a node that intersects with a member without breaking that member up into two segments for it to properly transfer the loads and resolve errors. The image below is just a simple example of what I'm referring to. The node in the middle of the horizontal member is at the same Y and Z planes as the two end nodes. Because I don't have this horizontal member segmented, it does not seem to recognize it's connected to the vertical member, and therefor is not transferring any loads. I was able to do this and it transfer loads in an older version of S-Frame before S-Frame was run by Altair (which I had the full version of S-Frame at the time). I now have a limited license, but I believe that would affect this? When I break up the horizontal member, everything works as it should as shown below.

Single member not transferring axial loads and producing errors (SL003):

Two segments transferring loads:

Thanks,

Deana