Those members no longer are considered to be failing in slenderness. However, they are failing because the interaction ratio computed per AISC equation H1-1 is greater than 1.0. The primary reason for this is that the axial stress exceeds the Euler stress.
If you view the design output in the ANL file, you will find warnings like this
**WARNING- THE AXIAL COMPRESSIVE STRESS EXCEEDS THE EULER STRESS FOR MEMBER 371
EQN. AISC H1-1 CANNOT BE CHECKED PROPERLY.
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To avoid a failure, you need to use a larger section than an RD16.