The second pattern is a reference of the first.
You are using a reference that is not able to pattern in the direction you selected.
I added a plane specific for the sketch (internal) and I added a sketch centerline for rotation. This corrected the reference pattern.
Creo 2.0 attached (M040)
I would still think the the reference should work, especially since I can successfully pattern with the same steps as the first pattern. In theory the reference being those same steps.
Reference patterns are very particular. Half the time they fail and I just re-use the previous transformation instead. In your case, there was something it couldn't re-reference to the sideways location.
If you want a more clear explanation, feel free to involve customer support.
Actually, the entire pattern generation technique tends to be somewhat esoteric from a layman's perspective. I still deal with some serious bugs in the M040 release that are much more problematic.