Envelope distort with top object in correct order but offset!!!???
The center of the shape is not being used or skewed, I have seen no reset origin of envelope distort or ... I have been using this forever and this has never happened?????? I WOULD LOVE an answer to this issue; yes, reinstalled preferences; restarted; checked all the preference boxes.
How was the path and type created, simple from scratch or a complicated history? Select the top object and look in appearance what it say. If anything else than path, than might be a clue to why this is happening
Try redrawing your shape should only take a few clicks. this will remove issues with
compound paths and stray points
bezier handle pulled out extremely
Do you have an older version of illustrator installed, try with that