Faro Arm Rhino Issue - stuck in 2D

We haven’t used our Faro Arm in a while so we may be missing something, but I was wondering if someone could tell us if this is a Rhino setting…
No matter which way we move the Faro Arm, the cursor does not move in the Z axis. Though we can draw in 3D with the mouse.

Thanks,
Frank

In Rhino, check if “Project” is not set to on in the object snaps…

It was Project in from the Osnap menu.

Thanks,
Frank