IF with AVERAGEIFS returning #Value

Hi all!

Figured I needed to explain what I try to achieve - thanks for your feedback Glenn.
If the value in C is 0 I want to the 3 above 3 cells in D.
Further, I want to include the project name as there are multiple project names in the column and I only want average for the project mentioned on the row I type the formula.


I don't understand why cell D13 is returning #Value.
In my opinion it should take average of the 3 cells above.

Can someone please provide me some feedback.

Thank you