Thanks for sharing your data. The issue here is with the WaveWatchIII dataset. It looks like you chose to project the global dataset to match your AOI’s projection. That’s totally sensible, but since the original data includes points all over the globe, not all of the lon/lat coordinates transformed to the local projection you’re working with. Instead the transformation left some point features with no geometry, or maybe something undefined. The model crashed when trying to index those points.
Solutions:
Either use the WaveWatchIII.shp that is included with the InVEST sample data, which is unprojected (the model will handle the projecting appropriately). Or, select a subset of the points near your AOI and project only those. I tried both options with your data.