I can see what is happening there. It is a result of two things:
- there is no tangent continuity along the whole set of edges.
- you have enabled the
Extendand theTrimoptions.
the ‘continue-across-faces’ option stops at the non-tangent discontinuity and extends the fillet to touch the surface boundary on the other side. Next, the fillet boundaries are used to trim and it chooses, correctly, to keep the triangular part and discard the remainder of the surface.
My advice is to unset the Extend option. You will need to think about what to do with the discontinuity.
Or first make the whole string of edges tangent continuous by inserting a small filleted edge - this changes the design though:

