Repair Geometry fails as a published geoprocessing service

I have published a model on ArcServer as a geoprocessing service. The first step in the model is to Repair Geometry of the user defined polygon input. The service runs without fail, but if I select a subset of the polygon feature class, and run the tool it fails.

The error message is ERROR 000314: in_memory\{085954B8-2330-4218-AEA1-30117842FBF2} is not a Shapefile or a feature class in a Personal or File Geodatabase.

If I export my selection to a feature class in a file geodatabse and then run the tool I get the same exact error.

I don't understand why it is failing. It is especially odd because I do not have this problem when I run the unpublished model with a selected subset of features as the input.

Do I need to change something in the geoprocessing service settings?

Any advice would be much appreciated.

Thanks!