I have noticed in many areas that the healing springs area will not cast because there may be rocks or other debris within the area you want to put the circle down. The most common area that I have been able to recreate this consistently is in Fungal Grotto where the second boss is (the room where you put the Goblins head on the spike when you kill him). This become problematic when the group is fighting the boss in that area and you need to target your spell there. If you place your healing springs circle in various positions on or close to the rocks in the center of the room it will result in either the inability to cast the spell altogether or a misfire of the spell and nothing happens.

I have seen this a lot in Craglorn as well...and it also involves the rocks.