Wall placement off on vertical grid

Dug out part of a hill and tried to put a building half in the dug out area and the wall appears to be placing lower than the normal snap in the dug out area. Also causes the room to not register as a room even after roof is on. Deleting and replacing the lower wall doesn't help, nor does placing a second wall layer above and then placing the off one below. It always places on the lower grid.

Screenshots of the issue linked to my steam account here.

https://steamuserimages-a.akamaihd.net/ugc/1817763481090887823/31BBD0D32F055035D71824E3541BEF960C29225A/?imw=5000&imh=5000&ima=fit&impolicy=Letterbox&imcolor=%23000000&letterbox=false

https://steamuserimages-a.akamaihd.net/ugc/1817763481090919130/7323034C66E7D3793E45486A1DD1A8FF4780C0DB/?imw=5000&imh=5000&ima=fit&impolicy=Letterbox&imcolor=%23000000&letterbox=false