Using project on point shape file to change coordinate system using ModelBuilder

I have created a model using ModelBuilder in ArcMap 10.8 to do the following:

1. Project point shape file to change coordinate system from A to B
2. Add a field (X)
3. Calculate field: !SHAPE.CENTROID.X! using python_9.3
4. Add a field (Y)
5. Calculate field: !SHAPE.CENTROID.Y! using python_9.3
6. Table to excel.

Whenever I run the model it stops at "Project" and gives me the following error ERROR 999999: Error executing function. Create output feature class failed Failed to execute (Project)."

Why does it not work? When I do this manually it works.