My objective is to displace the vertices of one mesh to match the positions of the vertices of another mesh. Both meshes are composed of the same number of vertices, located at the same XY locations but with different Z locations. I have been able to use the shrinkwrap modifier (using the project wrap method along the Z axis with the positive and negative directions enabled) to get essentially the result I am aiming for, except that some of the vertices along part of the mesh boundary are not moving to the corresponding vertices of the target object (see highlighted part of the screenshot below).
Here is a link to download the blender file - shrinkwrap_mesh.blend
I am hoping someone can explain why these vertices are not projecting to the target object and offer a solution so that all vertices displace to the corresponding vertices located at the same XY locations.