Hi,
First, let me mention that RailClone’s surface feature is currently somewhat limited. Unlike paneling tools that follow polygons or UVs, RailClone projects geometry along the object's local Z axis until it intersects with the surface geometry. This method works well when the face normals are oriented toward the RC object, but issues can arise when faces point away or overlap.
In this case, inclining the RC object slightly on the X-axis (around 30º) seems to solve the issue. I’ve also made the surface slightly larger using the Edit Poly > Outline and Inset tools to help avoid any unwanted deformations.
Please find attached a modified version of your scene (250408_KnitChairRC_ITOOSOFT.max). I hope this helps.
Best regards,