Hi Art, I think the only way Arc Continue would make a result like that is if you put the start point somewhere on the interior of the curve. If you snap it to the end of the curve it shouldn't do that.

But Arc Continue is not a good tool to use for a situation like that anywhere where you're trying to connect between 2 curves. Arc continue will only control tangency to the first curve that it is snapped on to.

To make an arc that is tangent to 2 other curves it would be better to use Arc Tangent or the Fillet command instead.

- Michael