If you check the help text for sine wave.vi you'll see that it generates the sine wave based on the following formula:
yi = a*sin(phase[i])
for i = 0, 1, 2, …, n – 1 and where
a is amplitude,
phase[i] = initial_phase + f*360*i
This means that when you input a=1, f=0,1 and initial_phase=0 you will get a sine wave that is based on samples at every n*36 degrees; i.e. at 0, 36, 72 etc...due to this sample rate you never see the full amplitude (+/- 90 degrees), the wave is clipped at the top. If you input an initial phase of 64 degrees you will get the full amplitude, but the wave is still deformed due to digitalization...
The lower the frequency you put in, the closer the digitalized representation will be to the true sine.
Use the Waveform Generator VIs from the analyze palette if you want to have more control over the wave generation (sample rates etc.). (Not available if you have the base package.)