Since I don't have the instruments, I can't really run the VI as you intend. What I did was set the arb and dmm subVIs to Show Front Panel When Called, Close Afterwards if Originally Closed, and Suspend When Called. By doing that, I was able to look at the freq values being passed to the arb. With a Starting Freq of 1000, ending freq of 2000, and Steps per Decade of 10, I never saw a value of 0 being passed to the arb. I would suggest you do the same to see when a freq of 0 is being sent.
What offset are you talking about? You don't have a control for offset. The offset of the arb is the DC offset of the signal.