I'm having a very similar issue to this. Here's a link to my problem:https://community.esri.com/message/823748-custom-overlays-arcmap
Wish there was some better information about how to troubleshoot custom overlay issues!
Is your custom overlay grid of the township and ranges? If so, would you be able to help me out? I can't seem to get it to work. Thanks!
Hi Stephanie - I've got a thread link here that shows me going through the steps to get the custom overlay grid working. https://community.esri.com/thread/226974-custom-overlays-arcmap
Hope this helps!