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MTC Knockout technique

I have watched Julie's video about 20 times today and also in the past.  I am on an original Expression using Windows 10 and have both version of MTC installed on my computer.

I have followed along with her step by step and am having problems with the Boolean join.  I have attached the file.  When I select the 2 shapes to do the Intersection, Boolean does not appear - which to me means there are more than 2 shapes or something.  My screen looks just like hers.  What am I doing wrong?

Thanks in advance.  I know it must be something simple.  

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