Taz Mini 2 missing washer in auto leveling

I have had a great time with my Lulz Mini 2 for the past year.
Last night, I had a print fail. Spaghetti everywhere. Had to pull some out that was wrapped around the front Y axis bearing (idler bearing). It all came out OK. No slop in the belt. The Y axis motor is tight and the shaft is good, set screw in there, etc.
I’m pretty sure the problem with the print was the filament settings, so I changed it OK and started a new print.
It all began OK. heating the nozzle and the bed, and was able to clean the extruder tip. But then when it went to level the bed, it completely missed the first washer (right rear). The nozzle was about a centimeter behind the bed. The Z axis drove down as far as it would go and made some grinding noises. Strange because it was able to get the Y position correct for nozzle cleaning, no problem.
I have updated my Cura and also the Mini 2 firmware. Still have this problem. I have also tried the LCD command to level the X axis, and it makes the same mistake in alignment. Any ideas of what to troubleshoot next?

This managed to solve itself.