What are you expecting for a result?
The documentation for this command states:
6 . Arc Three: The following command creates an arc either through 3 vertices or tangent to 3 curves. The Full qualifier will cause a complete circle to be created.
The ACIS geometry engine cannot find the arc tangent point on the circles so it fails.
I upgraded to 2021.4, but am experiencing the same issues. I am attaching a script that shows highly variable behavior of this function for different straight lines and on translations.curves.cub (19.6 KB) arc3.jou (952 Bytes)