That is one of the issues that I have with the latest version of sketch up, because it automatically cuts any dissecting lines, it's really difficult to find, misalignments and newly created shapes from lines that you hadn't noticed crossed.
One way the off-set tool can still be used is by highlighting one section using the arrow, hold down the shift key and go around clicking on each section in turn increasing the length of the highlight. If nothing else you end up with the whole shape off-set-able if that's a word. But I've sometimes found the misalignments and extra crossovers/cut lines whilst doing that, that's causing the problem.
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