Apply Symbology from Layer in Model Builder

I have a model in Model Builder that takes a shapefile, runs some tools on it, adds it to a geodatabase, applies symbology from a layer file and converts it to a KMZ. It all works fine except for the "Apply Symbology from Layer" tool.

I created a smaller model for testing the problem sections which is shown below. The original input feature class is a geodatabase. When I run this model, it runs and says it completes successfully, however my symbology is not applied to the layer.

The Input Layer and Symbology Layer are both point files, so that should not be the problem. When I manually import the Symbology Layer (outside of Model Builder), it displays fine, so I don't think it's an issue with the layer file.

I would appreciate any suggestions on how to solve this problem.