Description
You have provided a study area feature class but have specified Minimum Enclosing Rectangle for the study area method. A feature class is only used to define the study area when the study area method specified is User provided Study Area Feature Class. Calculations will be computed using the Minimum Enclosing Rectangle method.
Solution
Either change the Study Area Method parameter to User provided Study Area Feature Class or remove the specified feature class path from the Study Area Feature Class parameter.