It is not possible to edge a part that has been drawn/extruded from a curve/sketch using the ellipse function. The error message Pipe guide curve must only contain lines and/or circular arcs implies that the curves used to generate the edging must be arcs or lines and not a complex curve such as a b spline or ellipse.
To overcome this the Curve -> Manage -> Rebuild -> ARCS & LINES and select the curve/sketch.
This converts the ellipse into a composite curve represented by arcs allowing you to edge the part.
HOWEVER the ellipse is no longer associated with the original ellipse which means it is no longer parametric.
To partially overcome this we can use the File -> Include process to include the file that contains the one elliptical shape, change its size with the project and apply the rebuild that way you always have a parametric item to work with.