I too can replicate the issue in Modelbuilder. The help files states for the raster layer parameter:
The process_as_multidimensional parameter is only supported when the input is a single, multidimensional raster.
Your model implies it is getting a dataset (so no necessarily a CRF file) or the CRF is not what you think it is. I think more research of this Multidimensional raster data page might help you.
