Game mode: Single Player
I’ve noticed when trying to build my base that I get this issue pretty frequently. I’ll be placing parts on my wall, and when I go to place one that has no issue prior to placing, when I hit the button to place it down, it says “Failed to Place Building”.
This occurs seemingly at random. I’ve seen it suggested that It could be a result of your character standing there prior to trying to build, and while my character was moving along the wall as I added pieces, I can’t confirm if that’s the issue or not.
Update: Valid Workaround - Have the construction piece you want to place and a second random construction piece on your action bar. If the piece you want to place encounters the bug, switch to the random piece, then switch back to the piece you want to place.