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Issues with Inline Variables in ModelBuilder

Question asked by NNRobbins on Jan 24, 2020

I am trying to work through several feature classes where I want to select out a certain subset and then save them as a new feature class. I created a model for this but keep getting an error when I use the inline variable %Name% in to rename my new feature class using the Feature Class to Feature Class tool. The error code is 000354, which seems to imply it thinks I am naming the output %Name% instead of it's layer name. 


This is the model tool input for copying the feature class. 


Here is the model in totality:


I have had A LOT of issues with inline substitutions recently, so I am wondering what is going on... Am I not using them properly??