There is nothing wrong with John's VI. It is a great idea to use the gen LS fit for this.
The VI seems to work just fine here using synthetic data. You should wire the error out of the GenLSFit to a terminal, maybe your data is pathological in some way?
Please enter you data into the table, then "right-click...data operations...make current values default" before saving. Then attach it again so we can play with your actual values.
Attached is a slightly streamline version of your VI including some data. (My religion prohibits me from using the formula node so I eliminated it. There are easier ways to generate the H matrix in this case.;) )