I have an assembly and I just created a blank part inside of that assembly (saved externally, not a virtual part) and mated it to the origin of the main assembly (and aligned axes, so it's properly fixed in space, but I did not use the Fix command). Now when I Edit that part inside the assembly, I can't reference any holes or other geometry in the other parts of the assembly or create new sketches and Convert Entities.

Specifically I am trying to use the Hole Wizard and define the Hole Wizard Positions of a new hole center within my new part to reference a hole in another Part within the Assembly. For years I have been able to hover over the holes of the other Parts while editing a part and they would be recognized as hole centers and I could click them to place the new hole. Now I can't and I don't know what I am doing wrong. I can't reference geometry using Convert Entities in sketches either.

Here is a link to a youtube video showing the exact behavior that I want back:
SolidWorks How To Transfer Hole Location to Different Part in Assembly - YouTube

Did I somehow turn a setting off? What is the proper way to perform references to other parts in SolidWorks 2016 and beyond. I'm on 2016 x65 SP5.0.

This may be a very simply problem, but it is quite frustrating so I thank you in advance