Project to sketch should work fine if you 'edit here' in assembly mode. Be aware that you are creating an inter-design constraint, which can limit some other options in Alibre. I've used this functionality successfully for many years.
You do NOT have to create an interdesign relation with project to sketch. In fact it is best to avoid that.
The way to avoid that is to create a plane
in the target part file for the sketch to project TO. That is key. (and of course do NOT check the box at bottom that asks if you WANT to "maintain association with source".
If you tie the plane to ANYTHING ELSE in the assembly, you will have trouble with interdesign relations. You HAVE TO have a destination plane IN THE TARGET PART FILE.
The simple case is if the plane is actually a surface of the part. Then you can use that as the plane, or create a separate plane (better) that does not depend on the part surface (which might change).
If you do that, then the outline that you project will go into the part as if it were an undimensioned sketch (it's good to dimension it), which has NO relation back to the assembly, it is just a "snapshot". You will need to manually update it if mating parts change, but that is maybe better than the alternative, because you will know when to do it, what to do, and how to do it.
IF you instead tie to some surface or plane in the assembly OTHER than the affected part, it will still work, but you WILL have an "interdesign relation", and it will almost certainly end up biting you in the backside when you are not expecting that.
The problem is that if that other part, plane or surface moves, the interdesign relation will cause it to move in the affected part which it was projected to, as well. Odds are that will end up breaking some constraint(s), and your design explorer will light up as red as a mass murder scene. if that happens, you may be "S.O.L." because it will be really hard to untangle.