Update relationships grayed out

In ST6 update 10 we have an assembly where the mate shows a zero offset but the part is shifted out by a small amount. I looked at the Update Relationship button but it is grayed out. I turned off automatic updates but it is still grayed out. I swear it seems like I have ran into this issue before but can't find anything on it in my IRs or on the solution database.

Can anyone shed any light on the problem?