Revit Family Not Cutting Wall Properly

Ran into a case the other day where a wall hosted family (a towel dispenser in this case) that was cutting through the stud wall just fine, but wasn't cutting through a veneer wall (tile in this case) that was placed along side the stud wall.

If you run into a similar scenario, check the "Unconnected Height" of the wall.  If the unconnected height is less than 6'-0", the wall will behave different from other walls.

From the help file:
"Walls shorter than 6 feet are not cut, even if they intersect the cut plane.
The 6 feet are measured from the top of the bounding box to the bottom of the primary view range. ... When the top of the wall is less than 6 feet, the entire wall shows as projection even where it intersects the cut plane. This behavior always occurs when the Top Constraint property for the wall is specified as Unconnected."

So, to avoid this undesired behavior, simply "Attach" the top of the wall to the floor level or the level above and adjust the offset as needed.