Why cant I blend this Highlighted corner shape?
Accepted answer

Agreed with Steven.. seems to be bad geometry everywhere in this model. The roller-coaster floor has bad sections... the section of flats that lead into it from the fillet are bad. Makes reconstruction a bit of a chore, though I did spend some time building a new G1 to G1 section across.
I don't have SWorks, so can't look at the sketches/curves but that's where I'd start.
2 Other answer

Your wavy surface that creates that edge has multiple hard intersections. That surface needs to be smooth and tangential in order for that fillet to complete.

I started out by just deleting all the trouble faces (copied as sheets/surfaces for editing), built on bad geometry. So, everything from the large top radius, down to the planar surface.
(core_fix_section2)
Then you need to rebuild the bad faces (roller-coaster ramp around the core) that join the 4 mm radius to the 1 mm radius. Then extend those faces towards the center. We're basically trying to overbuild the surfaces and let the system trim them with a 1 mm joining radius.
(core_fix_1mm_extend) & (core_fix_1mm_radtrim)
Do the same thing for the two sets of faces that join to the 4 mm radius. The red faces are the ones I had to rebuild before extending & trimming.
(core_fix_R4_extended) & (core_fix_R4_trim)
Then you put the pieces together and sew everything up.