Dear Dan,
I would not say that there is not water... Although the first five layers are above the phreatic level, you have imposed a residual water in the Problem Settings dialog. Particle tracking is calculated based on Darcy velocities, therefore only if the lateral velocity is negligible the flow as well.
It seems to me (without knowing layer thickness) that you may have a considerable unsaturated zone. You may try the Richards approach for a better approximation of the fluxes in the vadose zone.
Best regards,
Carlos