I've never been able to get geofencing to work. I was hoping that in ver 1.29 just released it might work but I've just tested at the field and I can't get it to work. I'm using a stock 3DR quad with APM 2.51 board.
Also, I seem to remember a dedicated menu selection and page for geofencing in Mission Planner but I don't see it in MP 1.2.32. I did find it in the standard parameters selection but as I've said, no go on getting it to actually work.
Am I doing something wrong is it not working correctly?
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It's not quite complete. I haven't tried it myself but Craig says that it works in the horizontal direction but not vertical. It's the #2 item to be sorted out for 2.9.1 (#1 is inertial nav for loiter).
Geofencing was designed for planes, not copters. I know that the team has been working on make it work with copters, but I'm not sure if it's complete in 2.9. If not, it's certainly coming soon.