It turns out I can almost get the results I wanted without sketch 16. The only problem is it still says my guide curve doesn't intersect with section no. 2, but it still shows in the preview exactly how I want it.
Your guide curve on sketch 15 did not intersect the profile used on sketch 12. I just put in an arc segment and it worked but it is not defined. Look to see if you can fix the reason they do not line up.
What you expect from the loft? I don't think you can use loft based on the profiles/guided curves you have in your model