Coordinate Conversion does not see loaded layer

[llsjr2]

Scenario: My G3 planner comes in and requests for a map of field artillery locations with at the following locations:
38SKF5432252450
38SKF6679518706
38SKF9451726142
38SKF9158739314
38SKF8009823749
Then come in to add another point that is being planned. I go to add this point manually to my previously made product.
Workflow steps:

1. Add my map background (AGC Common Map Background (CMB)) raster catalog
   2 Zoom to locations
2. Input button

Expected Behavior

My point should be added to the map.

Current Behavior

Add-in does not recongize the layer in my map as a basemap. Receives error "Missing Layer" Please add a basemap or a layer to the map.
Direct input works but interactive does not.

But after the raster catalog is converted to a raster dataset it works properly.

Steps to Reproduce (for bugs)

Your Environment

Version: ArcMap 10.6.1
Data: Army Geospatial Center Common Map Background