Take for instance C927. The times are only 8 minutes apart and both times are outside your working hours. If I change the time in cell B927 to 8:21 I get 1:21.
I haven't studied the formula so I don't know how it works, but it seems to be creating a negative number which is why you are getting the ##'s.
EDIT:
I believe I have worked out a solution for you.
In C2:
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