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It is because the trimmed surface and the ruled surface are not knit together, and so there are two edges on top of one another, and through a stroke of 50-50 bad luck, you picked the edge of the trimmed surface rather than the edge of the ruled surface. If you hide the trimmed surface first, edit the loft, delete, then reselect the edge in question, the edge condition works the way you want it to.
Best of luck.
Ofcourse! Thank you very much Matt.