In principle, this component should not be over constrained, but I suspect this is because Alibre does not interpret the axis and the plane as being orthogonal. I think that Alibre maintains an 'orthogonal' flag between certain features such as planes, faces, holes etc, which by design are orthogonal. Features that are not orthogonal by design, but happen to end up at 90 degrees may not be assigned this 'orthogonal' flag.
In this example, Plane<3> may not have been set as orthogonal to Axis<2> even though they are. The constraint system may be looking at orthogonality and not being at 90 degrees. The constraint system says they are not orthogonal and throws the error.
I have seen this before and this is the conclusion I have come to. I think the trick is to define a point at the centre of the forward face (centre of the circular edge) and then mate the point with Plane<3>. The component is then correctly positioned along its axis, and the constraint mechanism is satisfied.