You have created a composite favorite and specified a point feature for the attribute "Select which feature to snap and rotate." That feature would normally split an underlying line feature when placed, but placing the composite favorite does not split the conductor as it should.
When a composite favorite is created, the features inside of it are placed relative to the selection anchor point. The anchor point stored with the composite favorite is, by default, the geometric center of the features that were selected when the composite favorite was initially created. If that anchor point is not specifically snapped to the point feature that should be splitting the line, it will not split the line when placed as part of a composite favorite. You must change the position of the anchor point to be snapped directly onto the correct point feature in the composite favorite.
Instructions on how to move the anchor point can be found on this page in the ArcFM Resource Center. It's easiest if you create your composite favorite away from other features and change the snapping settings as described in the linked topic to ensure that you are snapping the anchor point to the correct feature.