I suspect the issue here was confusion around what "it" was as the sentence has two possible subjects - "the cat" and "tail". Given cat was the primary subject, it probably assumed you wanted the arrow pointing to the cat.
Nah give it a try, I asked 3 AI services to make a cat without a tail, one after several tries gave me an image you couldn't see where the tail would be (luck)
After, I asked gemini to tell me where the no tailed cats(which had. Tail) tail was... Which is what I got here