1. If you manage to set up a fence kit - let's say between the trees (for that extra camo look), chop down some trees and attach the logs to it.
2. Using a shovel, build the 1st stage.
3. Add planks, nails.
4. Using a hammer or a hatchet, try to build a "Upper Wall Frame" or the "Lower Wall Frame".
5. You'll wait through the building animation, but there will be no effect (most likely because of the collision with the tree).
6. You finally decide to adjust the position of the fence, so it doesn't touch with the trees and you proceed to dismantle what you've managed to built.
7. You'll notice you can't dig the wooden logs out, because no matter what angle you're looking at the "Fence", no option to dismantle it pops up.
8. You can only destroy it at this point.

I believe the building restrictions should be adjusted, because in many cases we can put a fence / watchtower kit down, but can't complete the building, because it glitches out. It's very annoying and restricts creativity. We simply can't have a nice, well-hidden base in the woods right now. There is a mod called "BuildAnywhere" that does it right. We should be able to have more freedom in building. I'm not saying let us build sky-scrapers, but at least let the fences overlap in some way. We can't even connect them properly. We have to leave little gaps people can peek inside through, because the game won't let us build a fence closer to another one.