Union creates weird geometry, seam line is not filletable

 From:  Crusoe the Painter (CRUSOE)
347.12 In reply to 347.11 
Another weird thing. I have a curve, it's complete and joined. Yet when I extrude a circle over it, it looks like one solid piece, but 3 of the pieces aren't joined. I try joining and union, and it doesn't work. I can drag the seperate pieces around.

I'm attaching this version as well. file as well. There is a small circle floating near the curve I am using.
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