Did you ever find a fix to this? I am receiving the same error message, although not just when the selected area is off the edge of the map. I am receiving this error when I try to extract my entire data set. The entire data set includes 3 layers, 1 of which has ~12,000 features, another has ~1,200 records. I have increased the server return limit on the map service and the geoprocessing service to 15,000 to accommodate for all the features in the entire data set, but am still receiving the job failed error.
Any ideas on why this error is coming up? I am able to extract smaller areas of the data.