Geometry creation in instance is different than generic

Presumably, you are going to use this sketch in a protrusion or some such feature. When I do similar things I approach the fillets (rounds) in the shape two ways:

(1) Don't include them in the sketch, just define the geometric entities that lay out the outer shape with sharp corners, etc. Then, add the rounds as a separate feature on the protrusion, revolve, etc. This is pretty robust, usually only fails if I've input a ridiculous value for the round radius.

(2) Sketch the simple geometry described in (1), and add the rounds as tangent circles, not trimmed, just a radius dimension and two tangencies. When defining the feature(s) that use the sketch, the fillet in the sketch uses the radius of the sketched circle in your "sketch feature".

The trouble lies in the unreliable fashion in which Creo positions these tangent arcs. It's a combination of it picking the wrong side of the four quadrants of the crossing entities or "picking" the wrong half of the tangent arc to "keep". It looks like you are suffering a combination of both problems.

Something I've learned, very much the hard way, is it's infinitely better to define complicated geometry using multiple simple sketches rather than trying to define the whole thing in one sketch. I've had sketches with a lot of arcs and fillets, etc. become complete garbage when I've done something I thought was minor, like changing one of the fillet radii. That, or I get the dreaded and unfixable "Sketch has become unstable" error.

Ken has provided valid input and that is an option to deal with this by breaking it down and/or removing fillets from the sketch. 

It looks like your sketch is not constrained to regenerate properly with the variations applied in the instance. If you manually  "flex" your sketch in the generic model by setting the limit dimensions do you see the same issue?

If you want to use this sketch as shown you should try to use construction geometry/constraints in the generic sketch that maintain design intent when the dims are flexed to the low/high limits manually. If you post the saved generic sketch that would allow for root cause analysis.

Thanks for sharing this information.