EKF failsafe blocked throw mode

When trying to use throw mode with THROW_TYPE = 1 (Drop) it didn’t trigger (always stayed in throw stage 1), it entered land mode (because of an EKF failsafe) and also disarmed (not entirely sure why). We dropped the drone from about 60m with the THROW_ALT_MIN/MAX as 2m and 40m. It seems like the EKF failsafe probably blocked any throw mode activate because it entered LAND and also for some reason disarmed.

Visually, the drone dropped passively until ~30m from the ground, where it quickly leveled out but continued to fall at an only slightly slower rate.

Does anyone have any suggestions for reliably getting throw mode drop to trigger while ensuring there is sufficient altitude difference between where the drone is dropped from and where it triggers?

Logs/files: