Outdoor/Indoor lights won't work on a room having a staircase and an open ceiling/wall. There are several bugs in build mode that frustrate me, but this one is the most annoying. It's annoying because it feels intentional and unnecessary to prevent the users of the sims from utilizing the lighting tools/props without having to jump through hoops to make them work properly. My biggest gripe is that this is a thing on Consol/PC. This has been around for the years I've been playing this game with no fix, and it feels as though it'll never have a solution. It wouldn't be as bad if the outdoor lights worked the way they were supposed to in these rooms, but they don't. To clarify, it occurs in these situations:
1.) A selected room has a fence for walls (Annoying because building a front porch in a large household requires you not to have any freedom when trying to use a large fence enclosure in a two-story building or higher).
2.) There is an opening in the ceiling/floor (Such as when you want to use a staircase) and the bottom/top floor does not have a proper enclosure. I haven't tested in every scenario, but when trying to build a staircase up to the second floor of my building, I wanted to build up from my front porch to a landing above it. Neither the lights on the bottom floor or the one directly above it work.
3.) Outdoor lights flat will not work. I think this one has something to do with the ratio of how many spaces your house takes up on your plot, but I'm not so sure.
Besides this, there are several lighting issues with this game. Placing a light directly over a round table in a small room creates a dark spot all around it. Lighting is almost always unrealistically dim and requires about 5 to 10 lights in a room to light it properly. Just about the only light that works properly is the sun, and this has been a recurring issue for me on multiple platforms (although the table one I recently discovered on PC).