In your tracer screen shots, there are places where you see the word "Fail" in a red box. If you click on that, a window should pop up, hopefully telling you more about the fail. Can you click on the first one of those (presumably the later failures are as a result of this first one, although if you find that the error changes as some point, you could include that as well, along with whatever context you can muster)? The activity InvokeAxis2 fails at a Java step, so hopefully the error will help you figure out exactly where the java code is tripping up.
If you are comfortable going into the java, you can do a private checkout of the activity and add oLog.infoForced("debug statements"); to the code to get more insight into what's going on. That will write your custom message to the logs when you run the activity.