I have a simple 2 steps model created in Model Builder:
Since, the inputs in the last step are both Shape.Z aware, then it should be possible to set 'Observer Height Field' and 'Target Height Field' to Shape.Z. However, it only reads Shape.Z of the 3D point and not Shape.Z of the Skyline output.
However, when I follow these steps outside the Model Builder then it works fine and does read Shape.Z of the Skyline. Does anyone knows a workaround or solution to this problem?!
Maybe make a copy of the skyline and see if that works in the model.